The accrued expenses are a current liability.

Accrued expenses are the opposite of prepaid expenses. Accrued expense is expense which has been incurred but not yet paid

Accrued expenses are the opposite of prepaid expenses. Accrued expense is expense which has been incurred but not yet paid

Accrued expenses

Accrued expenses are we have already incurred but have not yet been paid and should actually have been paid. It is classified as current liability. Example: wages, rent, commission and royalties.

Accounting -> Accrued expenses Accrued expenses Pay day In this example wages have been paid for the three months ending of $3600. At 31 March there is $300 owing. The accrued expenses are a current liability. General journal Date Accounts Debit Credit 31 Mar. Wages 300 Accrued wages 300 Wages owing 31 Mar. Profit and Loss a/c 3 900 Wages 3 900 Wages posted to Profit and Loss a/c 1 Apr. Accrued wages 300 Wages 300 Reversing entry In the ledger Wages 31 Mar. Bank 3 600 Accrued wages 300 Profit and Loss a/c 3 900 3 900 3 900 1 Apr. Accrued wages 300 Accrued wages 1 Apr. Wages 300 31 Mar. Wages 300 Profit and Loss account 31 Mar. Wages 3 900

Information is precisely given.

Simply, accrued expenditure is current liability which has to be paid but has not been paid yet.

agreed

What are accrued expenses in a small business?