Accrued expense

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Financial reporting.

An amount owing - but not yet invoiced - for:

  • Services or goods received before the end of the accounting period; or
  • Other economic benefits enjoyed before the end of the accounting period.

An accrued expense is a form of liability, because it represents cash that will have to be paid out in the future, for a benefit that has already been received.

Accrued expenses may include estimates about the amounts of final future payments, or their likelihood, or both.

Also known as an accrual.

See also