An accrued liability is an obligation that a business has incurred but has not yet paid at the end of the accounting period.

It arises because of the accrual principle, which requires expenses to be recorded when they occur.

Examples:

Salaries payable

Interest payable

Outstanding rent

Utility bills due

Accrued liabilities are shown as current liabilities in the balance sheet.

In simple terms, an accrued liability is a debt for expenses that have already occurred but are not yet paid.