Register now or log in to join your professional community.
Expenses due in the current period but not paid are accrued expenses. They are recorded as current liability in the current period.
Accrued expense is expense which has been incurred but not yet paid. 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.
fully accepted with the all previous answers
Accrued expenses are expenses that have been incurred by an organization but not yet paid. Accrued expenses should be recorded in the month the expenses has incurred. For example, if you had services performed in October, but did not receive the invoice until November, you would record the expense in October since that is when you incurred the expense. Debit expense, credit accrued expense.
You would reverse this entry in the period the expense is paid so that you do not report duplicate expenses on the financial statements.
Accrual expenses relate to amounts due for goods or services already supplied to the entity. They are treated as expenses in the comprehensive income and as liability in the statement of financial position.
Accrued expenses are the expenses pertaining to the financial year and have not established to repay and are processed and included in the statement of profit and loss, as well as appearing in the balance sheet side creditor under Sundry Creditors
