Business Terms Glossary

Accrued Liabilities and Expenses

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.

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.

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