Accrued Expense


Accrued Expense
An accounting expense recognized in the books before it is paid for. It is a liability, and is usually current. These expenses are typically periodic and documented on a company's balance sheet due to the high probability that they will be collected.

Accrued expenses are the opposite of prepaid expenses. Firms will typically incur periodic expenses such as wages, interest and taxes. Even though they are to be paid at some future date, they are indicated on the firm's balance sheet from when the firm can reasonably expect their payment, until the time they are paid.

An example would be accruing interest that is building up on a bank loan.


Investment dictionary. . 2012.

Look at other dictionaries:

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  • accrued expense — An unpaid expense incurred and *recognized in a *financial reporting period, and recorded as a liability at the end of that period. In line with the *accruals basis of accounting, accrued expenses are matched with the accounting periods to which… …   Auditor's dictionary

  • accrued expense — an expense incurred but not yet paid, as accrued interest on notes payable. [1980 85] * * * …   Universalium

  • accrued expense — an expense incurred but not yet paid, as accrued interest on notes payable. [1980 85] …   Useful english dictionary

  • accrued expense — See: accrual …   Accounting dictionary

  • expense — ex‧pense [ɪkˈspens] noun 1. [countable, uncountable] ACCOUNTING an amount of money that a business or organization has to spend on something: • Most advertisers look upon advertising as an expense and not an investment, which is a mistake. • The… …   Financial and business terms

  • accrued cost — ➔ cost1 * * * accrued cost UK US noun [C] ACCOUNTING ► ACCRUED EXPENSE(Cf. ↑accrued expense) …   Financial and business terms

  • accrued liability — UK US noun [C] (plural accrued liabilities) ACCOUNTING ► ACCRUED EXPENSE(Cf. ↑accrued expense) …   Financial and business terms

  • accrued charge — UK US noun [C] ACCOUNTING ► ACCRUED EXPENSE(Cf. ↑accrued expense) …   Financial and business terms

  • expense — That which is expended, laid out or consumed. An outlay; charge; cost; price. The expenditure of money, time, labor, resources, and thought. That which is expended in order to secure benefit or bring about a result. Shinrone Farms, Inc. v. Gosch …   Black's law dictionary