Recording incurred but unpaid expenses is an example of an accrual.

Name: Recording incurred but unpaid expenses is an example of an accrual.
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Accrual accounting recognizes income and expenses when they are incurred, regardless of when the cash is received or paid. Recording incurred but unpaid expenses is an example of an accrual because the expense has been incurred (and therefore should be recognized) even though it hasn't been paid yet.

Recording Incurred but Unpaid Expenses Is an Example of an Accrual