Accrued Expenses
An accrued expense is a cost that a company has incurred in the current accounting period but is due to be paid in the future. In simple terms, it's an unpaid bill for goods or services that have already been received by the company. These expenses are recorded as liabilities on the company's balance sheet until they are paid. Accrued expenses ensure that expenses are recognized in the period in which they are incurred, even if the payment occurs later. Examples include wages, utilities, and taxes owed by the company.
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