Accrued expenses refer to:

Accrued expenses refer to expenses that a company has incurred during an accounting period but has not yet paid for. This typically occurs because the expense is recognized in the accounting period in which it is incurred rather than when it is actually paid out. For instance, if a business receives services such as utilities or wages in December but does not pay for them until January, those amounts would count as accrued expenses on the balance sheet as of December 31.

This concept aligns with the accrual basis of accounting, which dictates that expenses should be recognized when they are incurred, rather than when cash is exchanged. By recognizing these expenses in the correct accounting period, businesses provide a more accurate picture of their financial position and profitability.

The other options do not encapsulate the definition of accrued expenses. Payments for future services refer to prepaid expenses, while revenues received before goods are delivered relate to unearned revenue. Finally, expenses not recorded in financial statements would not be considered accrued expenses as they are unrecognized, contrasting with accrued expenses which are recorded even though the cash has yet to be paid out.