Accrue and Accrued Expense

 

 

Accrue

To accrue is to record revenue and expenses in the entity’s books in the period in which they have occurred.

Accrued Expense

A business expense which has been incurred by the entity against which it is yet to make any payment.

If the said expense has not yet been entered in the entity’s accounting records then entity would be required to make an adjusting entry in its books to record the said business expense which would see a relevant expense account being debited while a relevant payable account being credited.

 

 

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