An account used by S corporations which have retained earnings and profits are required to keep per the US tax code in order to assure that distributions receive the proper tax treatment. The account is made up of the corporation's net retained earnings.
Tax incurred on the income-to-date, but which is to be paid at the end of the accounting period.
Revenue earned in the current accounting period, but which will be collected in a subsequent period. Also called unrealized revenue.
Debt, expense, or obligation incurred in an accounting period but chargeable or payable in another.
Interest earned but not received (realized). For example, bonds usually pay interest every six months, therefore interest accrues between one interest payment and the next. The buyer of a bond pays its market value plus the interest earned up to the settlement date.
Amount earned in the current accounting period, but which will be received in a subsequent period.
Benefits credited to a participant's defined benefit plan based on the participant's eligible years of service that follow the plan's start date up to the most recent plan year.
Expenses (such as wages, salaries, and utility charges) which are incurred but for which no payment is made during an accounting period. They are shown in the balance sheet as a current (short term) liability. Also called accrued liabilities.