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What are accrued liabilities?

Author:
Harold Averkamp, CPA, MBA

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
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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

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