Explore the Accrual Concept in accounting, its importance, journal entries and real-world implications for accurate financial reporting. Click to know more. Accrued Expenses are the expenses that the firm has incurred but not paid for yet. Accrued expenses are also known as Accrued Liabilities. Accrued Expenses are recorded on the balance sheet as liabilities and are recognised under the accrual basis of accounting. Accruals are transactions incurred that impact a company's net income even though cash hasn't yet changed hands. Accrual accounting is preferred by IFRS and GAAP. Find out what accruals are and how they work. Understand their importance in financial accounting and learn about the pros and cons of using accrual accounting.
