What term describes expenses that have been incurred but not yet paid?

The correct answer is "Accrued Expenses" because this term specifically refers to expenses that a company has recognized in its financial statements but has not yet paid in cash. In accrual accounting, expenses are recognized when they are incurred, regardless of when the payment is made. This means that if a business has received goods or services and is obligated to pay for them, those expenses are recorded as liabilities on the balance sheet under accrued expenses.

Accrued expenses are essential for accurately presenting the financial position of a company, as they allow for matching expenses with the revenues they help to generate, adhering to the matching principle in accounting.

In contrast, accrued revenues refer to income that has been earned but not yet received in cash. Unearned revenue represents payments received from customers for services or goods that have yet to be delivered or performed, while outstanding liabilities encompass various obligations, some of which may not specifically pertain to expenses that are incurred but unpaid. Thus, accrued expenses aptly capture the specific scenario described in the question.