What are Accruals?

<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>