Q: Why would we use accrued liabilities and not accounts payable for Poll Question 8?
A: It's customary to use Accounts Payable for amounts due and payable to companies that supply inventory/materials to a business for use in producing or reselling products. For operating expenses due and payable, it is customary to use Accrued Liabilities to record amounts due and payable for a range of selling expenses – advertising and promotion, employee bonuses due and payable, etc. – that fall within the Operating Expenses category.
Course overview: Recording Transactions and Creating the Balance Sheet and Income Statement