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Examples of accrual in a Sentence
had an accrual of $100 through interest on my savings account last year
Recent Examples of accrual from the Web
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The move comes on the heels of failure by the past chairman and treasurer of the party to formally file paperwork placing them in those positions and the accrual of $500 in fines for late campaign filings.
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Fares apply to North American originating passengers only, and are not eligible for accrual of frequent flyer points/mileage.
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And, in turn, a data profile would develop for each individual with the gradual accrual of information, giving the coaches the wherewithal to make sound, logical decisions that would keep the team in optimal condition.
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New Plan After accruals to the existing defined benefit retirement plan stop in 2023, UPS will begin a contribution program that will place between 5 percent and 8 percent of a worker’s eligible salary into a 401(k), depending on seniority.
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Collecting anything is a slow-burning, incremental process entailing the gradual accrual of information and knowledge.
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And, notes the Times, the accrual of information by the F.B.I. about a potential crime does not necessarily mean prosecutors are constructing a case.
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But both bills involve measured reductions in pension accruals for workers and retirees — mainly in secondary benefit categories like inflation adjustments and lump-sum payouts.
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Qualcomm reduced patent licensing revenue for the March quarter by $974 million as an accrual for the BlackBerry award.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'accrual.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Origin and Etymology of accrual
Other Business Terms
Recent Examples of accrual from the Web
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The deal is worth about $240,000 and included signing bonuses and an increased vacation accrual cap.
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The justification for the bloated accrual rate was that there was no provision for disability benefits, but nothing was...
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But share values can be volatile, and taxing capital on an accrual basis could have the opposite effect: forcing people to sell assets that have sharply appreciated to pay the tax.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'accrual.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Origin and Etymology of accrual
derivative of 1accrual
Other Business Terms
Financial Definition of ACCRUAL
accrual
What It Is
Accruals are records of revenue and expenses in the periods in which they are incurred. They are a key component of the accrual method of accounting.
How It Works
Company XYZ must insure one of its buildings. The insurance company bills Company XYZ $600 every six months (one bill in January, the next in July). If each bill is for six months' coverage, then under the accrual method, Company XYZ would not record a $600 expense in January and a $600 expense in July (doing so would mean Company XYZ was using the cash method); it would instead record a $100 expense each month for the whole year. That is, Company would match the expense to the periods in which it is incurred: $100 for January, $100 for February, $100 for March, and so on. As you can see, accruals recognize economic events in certain periods regardless of when actual cash transactions occur.
Accrual accounting is the opposite of cash accounting, which recognizes economic events only when cash is exchanged. The accrual method is more common than the cash method, and the IRS often requires companies to use accruals when they have more than a certain level of revenues or carry inventory.
Why It Matters
Although it is more complex, harder to implement and harder to maintain than the cash method of accounting, most analysts agree that accruals provide a more accurate picture of a company's performance. That's because in any given accounting period, revenues are associated with their corresponding expenses, which gives a truer picture of the real costs of producing the revenue in a given period.
Additionally, accruals allow companies to reflect the fact that sales may have been made and expenses incurred even if cash has not changed hands yet (as is often the case with sales made on credit and similar circumstances). This in turn produces financial statements that are comparable over time.
However, one of the big drawbacks of accruals is that they tend to obscure the nature of the company's actual cash position (e.g., a company may show millions in sales but only have $10 in its cash account because its customers haven't paid yet).
Law Dictionary
accrual
playLegal Definition of accrual
1 : the action or process of accruing claim must be brought within two years of the date of accrual
2a : something that accrues; especially : an amount of money that periodically accumulates for a specific purpose (as payment of taxes or interest) b : something that has accrued during a specified period
Learn More about accrual
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See words that rhyme with accrual Thesaurus: All synonyms and antonyms for accrual Spanish Central: Translation of accrual Nglish: Translation of accrual for Spanish speakers Britannica English: Translation of accrual for Arabic speakers
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