ACCRUED EXPENSES, costs which have accumulated but which have not been paid or formally entered in the accounting records. Such items ordinarily are not represented by formal claims against a business and hence are not included in accounts payable. Thus, in determining operating costs for a given period, one must consider not only the expenses which have already been entered in the accounts but also any additional expenses applicable to the period but as yet unentered. Thus compensation owed to an employee for services performed since the last date of payment, rent owed to the property owner, interest on moneys borrowed, etc., are in the nature of accrued expenses (see INTEREST, Drvi DENO . L. C.)