Definition, Meaning & Synonyms
accrued charges
Financial Term
/əˈkruːd ˈʧɑːrdʒɪz/
Definition
Accrued charges refer to expenses that have been incurred but not yet paid or recorded in the financial statements.
Examples
- Utilities used during the month of December may result in accrued charges that will be paid in January.
- The company reported accrued charges for employee salaries that were due at the end of the month.
- Accrued charges for unpaid invoices can affect the cash flow of a business.
Meaning
Accrued charges arise when services are received or liabilities are created before the payment is made. These expenses are recognized in the period they are incurred, aligning with the accrual basis of accounting.
Synonyms
- Accruals
- Outstanding Expenses
- Unpaid Charges
