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Finance Glossary

Finance Glossary

Accrued-expense

Accrued-ex...

Accrued expense



Definition of Accrued expense


Accrued expenses are those expenses, from which the benefit has been already received in the current financial year but the payment has not yet been made. Accrued expenses are classified as a liability for the company. Thus it is shown on the liability side of the balance sheet while preparing the year-ending financial statements of the company.

In case an adjustment is given for accrued expense while preparing the financial statements at the year's end the effect of accrued expense is shown on the P/L account and balance sheet as well.


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