Accrued expense

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

• Accrual
• Accruals basis
• Accrued income
• Balance sheet
• Bookkeeping
• Deferred income
• Expense
• Financial reporting
• Financial statements
• Income statement
• Liabilities
• Prepayments
• Provision
• True and fair view