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