Definition of Accrued Liabilities
Accrued liabilities are usually expenses that have been incurred by a company as of the end of an accounting period, but the amounts have not yet been paid or recorded in the general ledger.
Accrued liabilities are recorded at the end of the accounting period by means of adjusting entries. The amounts for some accrued liabilities and their related expenses (or losses) may have to be estimated.
Examples of Accrued Liabilities
Some examples of accrued liabilities include the following:
- Services and purchases that have been received, but the vendors’ invoices have not yet been recorded in Accounts Payable
- Accrued employee wages and fringe benefits
- Accrued management bonuses
- Accrued interest on loans payable
- Accrued advertising and promotion
- Accrued product warranty costs
