Accrued Expenses
Outstanding expnese is that expense which is already incurred but amount is not paid while unexpired expenses are those expenses for which payment is made in advance but actually expenses are not yet incurred.
liabilities are recognized when it is incurred regardless of when it is paid
Accrued expenses are liabilities that represent costs a company has incurred but has not yet paid or recorded in its financial statements. These expenses are recognized in the accounting period in which they occur, following the accrual basis of accounting. Common examples include wages, interest, and utilities that have been incurred but not yet billed or paid. Accrued expenses ensure that financial statements accurately reflect a company's obligations and expenses during a specific period.
Accrued but unpaid expenses represent costs that a company has incurred during the fiscal period but has not yet paid, such as wages or utilities. While these amounts are recorded as liabilities on the balance sheet, they also impact the income statement as expenses, reducing net income for the period. This accounting treatment ensures that expenses are recognized in the period they are incurred, adhering to the accrual basis of accounting.
The accrual concept concerns the matching of costs and revenues for the reporting period.
Expenses incurred but not yet paid or recorded are called accrued expenses.
No, you cannot use your 2021 FSA funds for expenses incurred in 2020. FSA funds must be used for expenses incurred in the same plan year.
Accrued Expenses
No, you cannot use your 2022 FSA funds for expenses incurred in 2021.
Outstanding expnese is that expense which is already incurred but amount is not paid while unexpired expenses are those expenses for which payment is made in advance but actually expenses are not yet incurred.
When incurred
Incurred expenses before company formation after commencement of business
liabilities are recognized when it is incurred regardless of when it is paid
Accrued expenses are liabilities that represent costs a company has incurred but has not yet paid or recorded in its financial statements. These expenses are recognized in the accounting period in which they occur, following the accrual basis of accounting. Common examples include wages, interest, and utilities that have been incurred but not yet billed or paid. Accrued expenses ensure that financial statements accurately reflect a company's obligations and expenses during a specific period.
Selling Expenses
Expenses which are incurred for the selling of product is called Selling Expenses while expenses incurred on administration of general day to day tasks are called administration expenses