Accrued Expenses
Accrued expenses are expenses that have been incurred in a period but not yet paid or invoiced. They are recorded as a current liability on the balance sheet and as an expense on the income statement for the period in which the related goods or services were used.
Example: Example: At month-end, a company has $4,200 in wages earned by employees but not yet paid; it records Salaries Expense 4,200 and Accrued Liabilities 4,200.
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