quality:corruption, linguistic:paraphrasing
Accrued expenses

For example, if goods are supplied by a vendor in one accounting period but paid for in a later period, this creates an accrued expense. This adjustment prevents a fictitious increase in the receiving company's value equal to the increase in its inventory (assets) by the cost of the goods received but not yet paid for. Without such an accrued expense, a sale of these goods in the period they were supplied would lead to unpaid inventory (recognized as an expense but not actually incurred) offsetting the sale proceeds (revenue). This would result in a fictitious profit in the sale period and a fictitious loss in the payment period, both equal to the cost of goods sold.