Accruals refer to revenue that have been earned, or expenses that have been incurred but aren't yet recorded in a company's accounts.
Examples of accrued expenses include wages payable, bonuses, interest on loan and goods received.
One example of accrued revenue is accrued interest.
On the balance sheet, accrued expenses are recorded under the current liabilities section, while accrued revenue are recorded under the current assets section.
<p>Accruals refer to revenue that have been earned, or expenses that have been incurred but aren't yet recorded in a company's accounts.<br></p><p>Examples of accrued expenses include wages payable, bonuses, interest on loan and goods received.<br></p><p>One example of accrued revenue is accrued interest.<br></p><p>On the <a href="https://www.goforma.com/small-business-accounting/what-is-balance-sheet-profit-loss" target="_blank">balance sheet</a>, accrued expenses are recorded under the current liabilities section, while accrued revenue are recorded under the current assets section.</p>
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