Accrued Liabilities
Obligations for goods or services received but not yet paid for or invoiced, requiring estimation and recognition to ensure complete financial reporting.
Accrued Liabilities
Another term for accrued expenses, representing obligations for goods or services that have been received or incurred but not yet paid, invoiced, or formally agreed upon.
For example, a retailer at year-end might have accrued liabilities for December utilities received but not yet billed ($3,000), employee vacation time earned but not taken ($25,000), and property taxes incurred but not yet payable ($12,000).
Accrued liabilities ensure that financial statements include all economic events of the period, regardless of payment timing. They differ from accounts payable, which typically represent invoices already received but not yet paid. Recording these obligations improves financial statement accuracy and compliance with the matching principle.