Читать книгу Corporate Finance For Dummies - Michael Taillard - Страница 97

As a company utilizes resources such as labor, utilities, and the like, it must eventually pay for these resources. However, most companies make such payments once every week, two weeks, three weeks, month, and so on, not upon receipt of the resource.

 Accrued compensation refers to the amount of money that employees have earned by working for the company but haven’t been paid yet. Not that the company is refusing to pay, necessarily, just that people tend to get paid once every one to four weeks. So until these people receive their paychecks, the amount that the company owes them is considered a liability.

 Accrued expenses work in a similar way and are applied to such things as rent, electricity, water, and any other expenses that a company incurs and pays at regular intervals.