Thanks to accrual basis accounting, many expenses appear on the balance sheet before money changes hands. The company records these expenses, called accrued expenses, in the period they occur. They ...

Expenses are the costs of doing business to gain revenues, and they are accrued when they are incurred but not paid in the same period. Since the expense still applies to the period it was incurred, ...

Companies that use accrual accounting often end up with deferred expenses on their balance sheets. That's because under accrual accounting, accountants recognize expenses when they occur, not when the ...