Accrued Liabilities

Accrued liabilities are expenses that a company has incurred but hasn't yet paid. This means the company has received goods or services but hasn't settled the payment. Common examples include wages for employees worked but not yet paid and utility bills due at the end of a billing period. These liabilities are recorded on the balance sheet to reflect the company's financial obligations at that time, ensuring a more accurate picture of its financial health. In essence, they represent money the business owes for costs already incurred.