What is an accrued expense?

Answer by  chiamaka (7)

Expenses that are recognized before being paid. These expenses are liabilities and show up on the balance sheet for reporting purposes. They are accrued or reported at the end of the month and a reversing entry is made the following month.

Answer by  cskuza (99)

When closing the books at year end, an expense that was incurred in the prior fiscal year but it was not paid (the cash did not go out) until the next fiscal year.