Provide an explanation for each of the follow liability acco

Provide an explanation for each of the follow liability accounts.

Account Name Explanation
Accounts Payable

Accrued Liability

Unearned Revenue

What will be an ideal response

ANSWER

Account Name Explanation
Accounts Payable A promise made by the business to pay a debt in the future. Arises from a credit purchase.
Accrued Liability An amount owed but not paid.

Unearned Revenue Occurs when a company receives cash from a customer but has not provided the product or service. The promise to provide services or deliver goods in the future.