Final answer:
Accrued liabilities are expenses recognized but not yet paid, reflecting the matching principle of the accrual accounting system. These are depicted in the T-account format of a balance sheet.
Step-by-step explanation:
The term you’re looking for to describe an accounting line-item representing cash that has not yet been paid for an expense that has already been recognized on the balance sheet is called an accrued liability. This is not to be confused with amortization, which refers to the gradual write-off of an intangible asset over its useful life.
Accrued liabilities are recognized in accounting to represent expenses that have been incurred but not yet paid. This matches expenses with revenues in the period in which they occur rather than when cash is disbursed, adhering to the accrual basis of accounting. The T-account structure on a balance sheet helps to portray these types of accounts clearly. In terms of a bank's balance sheet, the money listed under assets may not actually be present in the bank because banks typically use a fraction of customer deposits to extend loans. This process is described by the banking term fractional-reserve banking.
When considering purchasing loans in the secondary market, the valuation of these loans is greatly influenced by the creditworthiness of the borrower, the economic context, particularly relating to interest rates, and the current market value of these loans, which serves as the unit of account.