what is accrued expenses
Home > Accounting Dictionary > A Terms > Accrued Expense. An accrued expense is a cost that is incurred in the current period but not paid for until the next period. In other words, its an expense that the company has benefited from but hasnt paid for or recorded yet. This is why an accrued expense is recorded as a liability at the end of a period. Its the amount of expenses owed to another company. The most common form of accruals is a monthly expense like rent or utilities that are consumed throughout the month and paid for on first of the following month. Lets take rent for example. The business benefits from the rent expense all month, but it doesnt actually pay for it until the next month.