Accrued Expense

Recording an expense I owe, but haven’t yet paid.

Let’s say I pay all my workers combined $10,000 for a five day week and the month ends on a Wednesday. I pay my workers $2000 a day ($10,000/2). By Wednesday I would owe my workers $6,000 (3 x $2,000). My accrued salary expense would be $6000 because I owe them the $6,000, but I haven’t yet paid it.

https://accounting.uworld.com/cpa-review/lc/accounting-dictionary/term/accrued-expense/