Definition of Accrued Liabilities and Expenses

Accrued Liabilities and Expenses includes charges that are owed by a business but for which they have not yet received a bill.
(Definition continues below)

These are liabilities and expenses that will need to be paid at some point in the future. They need to be entered into the company's accounting system in order to give an accurate representation of the firm's financial position.

Accrued liabilities and accrued expenses appear on the balance sheet. For example, the journal entry to record an accrued liability might debit an expense account and credit Accrued Liabilities.

An example of an accrued expense would be interest that is accruing on a bank loan and will need to be paid in the future at some point.

Accrued Liabilities and Expenses References On This Site

These Gaebler.com articles mention this glossary term:

• Balance Sheet Interpretation Part V: Current Liabilities - The five main categories of current liabilities are: accounts payable, accrued expense, income tax payable, short-term notes payable, and current...
• Accounting Terminology for Entrepreneurs: B, C - Current liabilities include accounts payable, short-term debt, accrued liabilities, etc. In general, companies draw from current assets to...
• Balance Sheet Interpretation Part V: Current Liabilities - The five main categories of current liabilities are: accounts payable, accrued expense, income tax payable, short-term notes payable, and current...
• Liquidity Ratios - This involves any short-term debt, accounts payable, accrued liabilities, and various short-term obligations. Both the current assets...
• Accounting Terminology for Entrepreneurs: B, C - Current liabilities include accounts payable, short-term debt, accrued liabilities, etc. In general, companies draw from current assets to...
• Liquidity Ratios - This involves any short-term debt, accounts payable, accrued liabilities, and various short-term obligations. Both the current assets...