Incurred refers to when the business - owes money as a result of a transaction, Accrued refers to the practice of - financial transactions as they happen, Incurred refers to being liable for - a loss or an expense during the accounting period that would lead to actual or potential spending for your company, A business incurs an expense in two instances –  - upon purchase or when it consumes a resource, Interest expense is an example of - an expense incurred over time, Accrued refers to an expense incurred - but not paid in the same reporting period, Accrued expenses are unpaid financial obligations - that lack invoice or documentation, These accrued expenses are current liabilities recorded in the balance sheet - that the company should pay within the next 12 months, A company needs to incur expenses first - before it records an accrued expense,

Accounting

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