Accrued liabilities
Okay kiddo, so let's imagine you really want a toy but you don't have enough money to buy it right now. But you promise the toy store that you'll pay them back in a few days. That promise to pay the toy store is like a "bill" or a "debt" that you owe to them.
In the same way, companies also owe money to others called accrued liabilities. These are bills or debts that a company has to pay in the future, but they haven't paid them yet. It's kind of like they borrowed some money from someone, but they promise to pay it back later.
Accrued liabilities can be things like wages or salary that the company owes to their employees but haven't paid yet, interest they owe on loans they've taken, taxes they have to pay to the government, or even bills for services like electricity or rent that they haven't paid yet.
Just like you have to pay back the toy store, companies have to pay back their accrued liabilities eventually. They have to keep track of all the bills they owe and make sure they pay them on time. If they don't, they might get in trouble with the people they owe money to, just like you might get in trouble with the toy store if you don't pay them back on time.
In the same way, companies also owe money to others called accrued liabilities. These are bills or debts that a company has to pay in the future, but they haven't paid them yet. It's kind of like they borrowed some money from someone, but they promise to pay it back later.
Accrued liabilities can be things like wages or salary that the company owes to their employees but haven't paid yet, interest they owe on loans they've taken, taxes they have to pay to the government, or even bills for services like electricity or rent that they haven't paid yet.
Just like you have to pay back the toy store, companies have to pay back their accrued liabilities eventually. They have to keep track of all the bills they owe and make sure they pay them on time. If they don't, they might get in trouble with the people they owe money to, just like you might get in trouble with the toy store if you don't pay them back on time.