Are accrued expenses a liability or asset?

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Tallent 0 Comments

I am getting confused with accrued expenses, accrued income and deferred income. Is the accrued expenses a current liability or a current asset and why?

2 Answers

score 0 · Answer 1 · 2012-12-02T21:46:29+00:00

Accrued expenses is a liability since you expect that you will have to pay for services that you have consumed at some point in the near future.

score 0 · Answer 2 · 2013-05-06T23:00:30+00:00

Accrued expenses are liabilities and not assets. Accruals are expenses that have been incurred but not yet invoices so accrued expenses (or accruals in other words) are liabilities.