Which term refers to the impact of unpaid expenses in financial reporting?

The term that refers to the impact of unpaid expenses in financial reporting is accrued expenses. Accrued expenses are liabilities that represent expenses that have been incurred but not yet paid. This means that a company has received benefits from goods or services but hasn’t yet settled the payment, resulting in an obligation on the balance sheet.

When accrued expenses are recorded, they align the expenses with the revenues of the period in which they were generated, adhering to the accrual basis of accounting. This principle ensures that financial statements accurately reflect the company’s financial position by recognizing expenses when they are incurred rather than when cash is actually paid out, thus providing a clearer picture of profitability and financial health.

In contrast, capital expenditure refers to spending on long-term assets, operating cash flow relates to the cash generated from a company's regular business operations, and deferred revenue represents cash received before services or goods have been delivered, indicating that those amounts are yet to be recognized as revenue. Each of these terms reflects different aspects of financial management and reporting, but they do not specifically pertain to the obligations associated with unpaid expenses like accrued expenses do.