Course Outline
Join PRO

What is the difference between accounts payable and accrued expenses payable?

Author:
Harold Averkamp, CPA, MBA

Definition of Accounts Payable

Accounts Payable is a liability account in which suppliers’ or vendors’ approved invoices are recorded. As a result, the balance in Accounts Payable should be a precise amount.

Definition of Accrued Expenses Payable

Accrued Expenses Payable is a liability account that records amounts that are owed, but the vendors’ invoices have not yet been received and/or have not yet been recorded in Accounts Payable as of the end of the accounting period. The amounts in this account are usually recorded with accrual adjusting entries made at the end of the accounting period.

Examples of Accrued Expenses Payable

In addition to the amounts associated with vendors’ invoices, accrued expenses may also include wages, interest, utilities, and other expenses that were incurred and owed, but not yet recorded in the general ledger accounts. Some of the amounts recorded in Accrued Expenses Payable may be estimated amounts that should supported by reasonable and documented calculations.

Join PRO to Track Progress

Features

Free

PRO

Lifetime Access (One-Time Fee)
Explanations
Quizzes
Q&A
Dictionary
Bookkeeping Video Training
Financial Statements Video Training
Visual Tutorials
Quick Tests
Quick Tests with Coaching
Cheat Sheets
Flashcards
Crossword Puzzles
Word Scrambles with Coaching
Bookkeeping Study Guide
Managerial and Cost Accounting Study Guide
Certificates of Achievement
Bookkeeping Certificate of Excellence
Business Forms
Printable PDF Files
Progress Tracking
Motivational Badges and Points
Motivational Medal Rankings
Motivational Activity Streaks
Public Profile Page of Achievements

About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

Learn More About Harold

Read 3,033 Testimonials

PRO for Teams
  • Convert your existing PRO account to a "Team" account for free
  • Easily add new PRO users and admins to your team
  • Monitor team progress, average grades, recent activity, achievements, and more
PRO for Teams
Take the Tour Join Pro Upgrade to Pro