Accrued Expenses

RECENT NEWS
Forbes  Mar 25  Comment 
You’re fresh out of college, a new hire at the local CPA firm. It’s your first tax season, and you’re handed a business tax return to prepare.
StreetInsider.com  Aug 2  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Corporate+News/Mondelez+%28MDLZ%29+to+Report+Q3+Income+of+%24385M+from+Cadbury+Accrued+Liability+Reversal/8562511.html for the full story.
Forbes  Nov 20  Comment 
With 2013 rapidly approaching, many employers will soon determine the year-end bonus payments they'll make to their employees. As a recent IRS Private Letter Ruling reminds us, however, for an accrual basis employer, the details of their bonus...
Investing School  May 25  Comment 
Simply defined, accrued benefits are those benefits earned over time. They are provided above and beyond the basic salary. This can be coverage earned through a pension plan, vacation time, sick days or paid time off. These benefits are often...
Canada.com  Mar 28  Comment 
The use of accrued liabilities to pad earnings was a “legitimate” and standard practice at Nortel Networks Corp. in the early 2000s, and a process directly overseen by the company’s external auditors, Deloitte & Touche LLC, a Toronto...
Biomass Magazine  May 20  Comment 
As the U.S. EPA decides how it should treat woody biomass in its Greenhouse Gas Tailoring Rule, I hope they take into account William Strauss’s study titled “How Manomet got it Backwards: Challenging the ‘debt-then-dividend’ axiom.”




RELATED WIKI ARTICLES
 

Accrued expenses are accounting expenses that have been recorded, but not yet paid

Accrued expenses are costs that a company has recognized for accounting purposes, but which is yet to pay for. Under the accrual method of accounting, companies will sometimes recognize and record expenses even before they are paid, as an expense's payment date is often not the best true measure of when the expense occurred. Such expenses are said to be accrued. Examples of items that can be classified as accrued expenses are taxes, payroll and interest.

The opposite of accrued expenses are prepaid expense. It occurs when a company pays for some goods or services in advance.

Examples

  • A company may hire a consultant in March, but not pay his or her invoice until June. The expense should still be classified as a March expense.
  • A company incurs $20,000 in taxes in 2008. These taxes are due for payment in March 2009. Because they've been incurred already, the taxes show up on the company's January 2009 balance sheet as an accrued expense. However, they won't be paid till March 2009.
Please install Flash Player to view this chart.
Please install Flash Player to view this chart.
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki