Accrued Liability

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Accrued liabilities, often referred to as accrued liabilities definition, represent expenses that have been incurred but not yet paid by the end of an accounting period. These liabilities are recorded in the financial statements to ensure that expenses are matched with the revenues they generate, adhering to the accrual basis of accounting. Common examples include wages payable and interest payable. Accrued liabilities are crucial for accurate financial reporting and analysis.

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