Accruals on the balance sheet refer to amounts that a company owes or is owed at the end of an accounting period. This typically refers to items such as payroll, rent, taxes, and other forms of liability or receivable which are not paid by the end of the period. On a balance sheet, these items are reported separately from cash or accounts payable/receivable, giving investors a more detailed picture of a company’s current financial state. The accruals balance sheet gives investors the ability to gauge if a company has adequate resources to cover their liabilities and is able to meet long-term obligations. By analyzing these items, they can make an informed decision about whether or not to invest in a particular company.