Accrued expense

From ACT Wiki
Jump to: navigation, search

Financial reporting - balance sheet - liabilities.

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