What are accrued expenses and when are they recorded?

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    An Accrued expense is an expense which has been incurred but not yet paid. This expense must be recorded in the accounting period in which it is incurred. Therefore, accrued expense must be recognized in the accounting period in which it occurs rather than in the following period in which it will be paid.

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    Thanks for the helpful answer Christene :) 

     

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    this has been a great help thanks Christene

     

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    Accrued expenses are reported in the current liabilities section of the balance sheet. Accrued expenses reported as current liabilities are the expenses that a company has incurred as of the balance sheet date, but have not yet been recorded or paid. Typical accrued expenses include wages, interest, utilities, repairs, bonuses, and taxes.

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    This is a test comment.

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    Very insightful thank you

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