Thanks to accrual basis accounting, many expenses appear on the balance sheet before money changes hands. The company records these expenses, called accrued expenses, in the period they occur. They ...

The Tax Court denied two related partnerships their claimed deductions for accrued production costs connected to their tomato products business because the partnerships had not incurred a liability ...

There are many industries where companies provide goods or services but aren’t immediately paid for them. From an accrual basis accounting standpoint, these represent accrued revenue for the company.

If you have recently opened a small business, you might be unfamiliar with the proper accounting treatment for accrued expenses, especially at year-end. Accruals of both income and expenses are ...