Accrued Liabilities

What is Accrued Liabilities?

Accrued liabilities are expenses that a company has incurred but has not yet paid. These are recorded on the balance sheet as current liabilities because they are typically settled within a short period. Unlike accounts payable, which are based on received invoices, accrued liabilities are estimated amounts that will be paid in the future.

Examples include salaries earned by employees but not yet paid, interest expense that has accrued, or unpaid utility bills.