Balance sheet - liabilities and equity
Accrued Expenses
Records costs already incurred but not yet invoiced or paid. It is a short-term obligation and helps separate economic consumption, invoice timing and cash outflow.
Accrued Expenses
accruedExpenses · Balance sheet - liabilities and equity
- Definition
- Records costs already incurred but not yet invoiced or paid. It is a short-term obligation and helps separate economic consumption, invoice timing and cash outflow.
- Calculation
- Expenses incurridos en el periodo - importes ya facturados o pagados.
- Uses
- Useful for measuring spontaneous financing, future obligations and liquidity risk. Critical in levered companies, utilities, real estate, industrials and advance-payment models. It can mislead without maturities, debt cost, covenants, leases and off-balance-sheet obligations. Cross-check cash, FCF, interest coverage and net debt.
