Accrued Expenses:
Accrued expenses refer to the financial obligations that a company has incurred but has not yet paid for. These expenses are recognized and recorded in the accounting books during the period in which they are incurred, regardless of when the actual payment is made. Accrued expenses are typically recurring costs that are necessary for the operation of the business, such as salaries, interest, taxes, utilities, or rent. They are considered liabilities on the company’s balance sheet until they are settled. Accrued expenses are important for accurate financial reporting and help provide a more comprehensive view of a company’s financial position.
Accrued expenses refer to the financial obligations that a company has incurred but has not yet paid for. These expenses are recognized and recorded in the company’s financial statements even though the payment has not been made. Accrued expenses typically include items such as salaries and wages, interest, taxes, and utilities. They are recorded as liabilities on the company’s balance sheet and are adjusted periodically to reflect the actual amount owed. Accrued expenses are important for accurate financial reporting and help provide a more comprehensive view of a company’s financial position.
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This glossary post was last updated: 29th March 2024.
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