Accrued Expenses VS Accounts Payable With Similarities
Difference Between Accrued Expenses And Accounts Payable Accrued Expenses are the expe nses payable by the business to outsiders of the business within a year. So, these are i ncurred over a period of time and co nt i nue throughout the accounting period until fully paid by the company. Examples are Accrued Salaries , Accrued Wages, etc. while Accounts Payable are the amounts of debts due from the business to outsiders (Suppliers) usually within one (1) Mo nths but some time it goes to two (2) to three (3) months. These are more shorter period of time as compare to Accrued Expe nses. 2. Accounts Payable arise specifically only in case of Purchasing of Merchandise or Goods on Credit / Account from suppliers / vendors of the b usi ness , while Accrued Expenses are i ncurred for all others Expenses except Purchase Of Goods. Examples are Salaries still not paid to employees already delivered services or wages paid to workers for the construction still remai...