accrued liabilities

USAGE SUMMARY

The phrase "accrued liabilities" is correct and usable in written English.
It is typically used in accounting and finance to refer to expenses that have been incurred but not yet paid or recorded in the financial statements. Example: "At the end of the fiscal year, the company reported a significant increase in accrued liabilities due to outstanding invoices."

✓ Grammatically correct

Formal & Business

News & Media

Wiki

Science

Human-verified examples from authoritative sources

Exact Expressions

18 human-written examples

"I am satisfied that noncash impacting excess accrued liabilities on the balance sheet were not a priority," Justice Marrocco wrote.

The New York Times - Tech

Changes in the accrued liabilities of Social Security and Medicare, in particular, should be assessed on the federal budget each year.

The New York Times

The earnings restatement is necessary "to correct certain errors discovered in its recording of its intercompany pricing arrangements and accounts payable and accrued liabilities," Warnaco said in the filing.

The New York Times

That suggests the discount rate should be the Treasury bond yield, considered the risk-free rate.Mr Novy-Marx and Mr Rauh (who is now at the Kellogg School of Management at Northwestern University) estimated the accrued liabilities of the 116 largest state and local-government pension plans using the risk-free rate.

The Economist

The company later said Rand may have inflated reserves and other accrued liabilities in prior accounting periods.

Forbes

Beazer previously disclosed that its former Chief Accounting Officer Michael Rand may have inflated reserves and other accrued liabilities in earlier periods.

Forbes

Human-verified similar examples from authoritative sources

Similar Expressions

38 human-written examples

In 2008, the Government Actuary's Department estimated the accrued liability for public sector pensions at £770bn, at 31 March 2008.

The Guardian - Money

The original said that one company's estimate of the accrued liability for public-sector pensions was £993bn – equal to "more than £150,000 for every man, woman and child in Britain today".

The Guardian - Money

We find that the total unfunded accrued liability of state and local governments for the provision of retiree health care exceeds $1 trillion, or about ⅓ of total state and local government revenue.

Journal of Health Economics

The actuarial accrued liability would climb about 13percentt for each percentage point difference between5.5percentnt and whatever discount rate was used.

Huffington Post

In 1996-97, the introduction of the new policy for FAO, but not WFP, resulted in an inconsistency in the presentation of the consolidated accrued liability related to the SPS.

FAO

Expert writing Tips

Best practice

For accurate financial reporting, regularly reconcile your "accrued liabilities" accounts with supporting documentation like contracts, invoices, and employee time records.

Common error

Don't assume that all short-term debts are "accrued liabilities". Accounts payable are for goods/services already invoiced. "Accrued liabilities" cover expenses incurred but not yet billed, such as estimated taxes or wages.

Linguistic Context

The phrase "accrued liabilities" functions as a noun phrase, specifically identifying a category of financial obligations within accounting. Ludwig indicates that this term is correctly used in contexts concerning financial statements and corporate accounting.

Expression frequency: Common

Frequent in

Formal & Business

25%

News & Media

38%

Wiki

25%

Less common in

Science

12%

Encyclopedias

0%

Social Media

0%

Ludwig's WRAP-UP

In summary, "accrued liabilities" refers to expenses that have been incurred but not yet paid, a crucial concept in accounting for accurate financial reporting. Ludwig AI confirms the grammatical correctness and professional usage of this phrase, particularly in business and news contexts. Understanding and properly accounting for "accrued liabilities" is essential for presenting a clear picture of a company's financial position. Common alternative phrases include "outstanding obligations" and "accumulated expenses", though these may not perfectly capture the specific accounting context. Remember to differentiate "accrued liabilities" from accounts payable, which are invoices already received but not yet paid.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

outstanding obligations

Focuses on the state of being unpaid or unsettled; less specific to accounting.

unpaid debts

Emphasizes the debt aspect, suitable when highlighting financial obligations.

accumulated expenses

Highlights the expense aspect, relevant when discussing cost accumulation.

deferred payments

Suggests payments that are postponed; may not fully capture the 'incurred but not paid' nuance.

unsettled accounts

Broader term referring to accounts that are not yet finalized or cleared.

pending dues

Implies payments that are expected soon, differing from the incurred aspect.

financial obligations

A more general term for any type of financial responsibility.

unfunded liabilities

Focuses on liabilities that lack sufficient funding, adding a layer of financial concern.

open invoices

Specifies unpaid invoices, a component of accrued liabilities.

short-term liabilities

Highlights the time frame for settlement, emphasizing near-term obligations.

FAQs

How are "accrued liabilities" different from accounts payable?

"Accrued liabilities" represent expenses that have been incurred but not yet invoiced, while accounts payable are for expenses that have already been invoiced but not yet paid. They both are current liabilities, but the trigger for recognition differs.

What are some common examples of "accrued liabilities"?

Common examples include "accrued" wages (earned but unpaid), "accrued" taxes (owed but not yet paid), "accrued" interest (incurred but not yet paid), and "accrued" utilities (used but not yet billed).

Why is it important to properly account for "accrued liabilities"?

Properly accounting for "accrued liabilities" ensures that a company's financial statements accurately reflect its financial position and performance. Failing to record "accrued liabilities" can lead to understated expenses and overstated profits.

What is the relationship between "accrued liabilities" and the matching principle?

"Accrued liabilities" are a direct application of the matching principle in accounting, which requires that expenses be recognized in the same period as the revenues they helped generate. Recognizing "accrued liabilities" ensures that expenses are matched with the related revenues, regardless of when cash is paid.