What Are Accrued Expenses?

Patrick Curtis

Reviewed by

Patrick Curtis WSO Editorial Board

Expertise: Investment Banking | Private Equity

Accrued Expenses are when a company puts down costs on its balance sheet before they actually pay them. This is usually because the liability is frequent and regular (i.e. wages).

The reason the company can claim this as liabilities in advance is because there is a very high probability that they will be paid. Accrued Expenses are found on the Balance Sheet under Current Liabilities.

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Patrick Curtis

Patrick Curtis is a member of WSO Editorial Board which helps ensure the accuracy of content across top articles on Wall Street Oasis. He has experience in investment banking at Rothschild and private equity at Tailwind Capital along with an MBA from the Wharton School of Business. He is also the founder and current CEO of Wall Street Oasis. This content was originally created by member WallStreetOasis.com and has evolved with the help of our mentors.