Costs incurred during an accounting period but unpaid and unrecorded are accrued expenses.

Question

Quizplus · Accepted Answer

Accrued expenses are those expenses that have been incurred during an accounting period but not yet paid or recorded in the accounts. These expenses include salaries and wages, rent, interest, taxes, and other similar expenses that are recognized as liabilities on the balance sheet until they are paid. Accrued expenses are recorded through adjusting entries at the end of the accounting period to ensure that financial statements reflect the actual expenses incurred during the period.

Costs Incurred During an Accounting Period but Unpaid and Unrecorded