Final answer:
The term used to indicate an expense that has not been paid or recognized by a routine entry is accrued expense. Accrued expenses are recorded as liabilities on the balance sheet until they are paid. They are usually recognized at the end of an accounting period through an adjusting entry.
Step-by-step explanation:
The term used to indicate an expense that has not been paid or recognized by a routine entry is accrued expense. Accrued expenses are expenses that have been incurred but have not yet been paid. They are recorded as liabilities on the balance sheet until they are paid.
For example, let's say a company has an electricity bill for the month of December, but the bill has not been received yet. However, the company knows that the expense will be incurred in December, so it will record an accrued expense for that amount on its balance sheet.
Accrued expenses are usually recognized at the end of an accounting period through an adjusting entry. This ensures that the financial statements accurately reflect the expenses that have been incurred but not yet paid.