Definition
Expenses that have been incurred but not yet paid or formally billed—money you owe but haven't written a check for yet. They lurk on the balance sheet as a reminder that obligations don't disappear just because the invoice hasn't arrived.
Example Usage
The accrued liabilities included three months of unpaid employee bonuses, which explained the suspiciously cheerful accountants.
Origin
Formalized with accrual accounting principles in the early 20th century.
Fun Fact
Year-end accruals are where accounting becomes creative writing, as companies estimate expenses they know exist but can't precisely quantify yet.
Source: Accrual accounting terminology
Related Terms
Translate This Term
See “accrued liabilities” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.
Try the Translator