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As its rationale for the decision in Brown,the Supreme Court relied primarily on
Accrued Expenses
Liabilities (payables) created when expenses are incurred, but cash will be paid in the future; created at end of period during the adjustment process to reflect the amount of expense incurred that the company will pay in the future.
Depreciation Expense
Distributing the expense of a physical asset throughout its lifespan.
Accrue Interest Expense
The recording of interest expense that has been incurred but not yet paid, typically on borrowed funds.
Financial Statements
These are formal records that outline the financial activities and condition of a business, entity, or individual.
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