To calculate the cash flow associated with an accrued expense,any increase in the associated liability should be added to the expense.

Question

Quizplus · Accepted Answer

Accrued expenses are already reflected in the income statement as expenses when incurred, not when paid. Therefore, an increase in the accrued expenses liability does not affect the cash flow directly since it represents expenses that have been recognized but not yet paid in cash.

To Calculate the Cash Flow Associated with an Accrued Expense,any