Question

Accrued Liabilities: To appropriately reflect the obligation to pay (for ex: because the service was received), the company must_________

Answer 1

Accrued liabilities are obligations that a company has incurred but has not yet paid. To reflect this obligation, the company must record accrued liabilities in its financial statements.

Step-by-step explanation:

Accrued liabilities are obligations that a company has incurred but has not yet paid. To appropriately reflect the obligation to pay, the company must record the accrued liabilities as part of its financial statements. This is done by recognizing the expense or liability and increasing the corresponding liability account on the balance sheet.