Accrued Expenses
Accrued Expenses is a liability on the Balance Sheet and refers to expenses that a company has incurred during a specific accounting period but has not yet paid as of the balance sheet dates.
Examples:
- Unpaid salaries & wages
- Utilities
- Taxes payable
- Rent
In the room
Accrued expenses show up in working capital walkthroughs. The concept is simple once framed correctly: you've incurred the cost and recognized it on the income statement, but the cash hasn't left yet.