An accrued liability arises when an entity has incurred expenses but has not yet paid them.
Accrued liabilities arise from events that occur in the ordinary course of business.
These liabilities or expenses exist only when using the accrual basis.
Accounting for accrued liabilities requires a debit to the expense account and a credit to the accrued liability account, which is then reversed when the cash or expense account is credited and the accrued liability account is debited.
Examples of accrued liabilities could include payroll and payroll taxes.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.