Harness Money

What is accrued liability?

Accrued liability refers to an expense that a company has incurred but has not yet paid or recorded in its accounting books. It represents an obligation or debt that the company owes to another party as a result of goods or services received. Accrued liabilities are typically recorded when an expense has been incurred but the payment has not yet been made. Common examples of accrued liabilities include wages and salaries owed to employees, taxes payable, interest payable on loans, or unpaid utility bills. These liabilities are recorded on the company’s balance sheet to reflect the company’s financial obligations, even though the actual payment has not yet occurred.