accrue
verb
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Definition of accrue
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Other Words from accrue
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adjective
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noun
Examples of accrue in a Sentence
Recent Examples on the Web
Goalie Molly Laliberty has accrued a whopping 125 saves (.661 save percentage) through 15 games, allowing 4.5 goals per game. — Liam O’brien, BostonGlobe.com, "Sticking with a three-team race in the Middlesex Liberty," 16 May 2018 In his fourth big-league season, Lindor, 24, already has accrued two All-Star Game berths, won a Gold Glove and played in the 2016 World Series. — Stephen Ruiz, OrlandoSentinel.com, "Seven years after Francisco Lindor, another Montverde shortstop turns heads," 1 May 2018 Fan art with savage, grittier renditions of pokémon regularly goes viral on the internet, accruing millions of page views and hits. — Patricia Hernandez, The Verge, "The internet’s horrified with Detective Pikachu," 12 Nov. 2018 But if their families run out of money, students accrue lunch debt or may be denied meals. — Nadra Nittle, Vox, "How states and crowdfunding are tackling the growing problem of student lunch debt," 27 Dec. 2018 In San Diego, for example, drivers can accrue a dollar-per-ride bonus for using plug-in hybrids or full battery electric vehicles, with a maximum payout of $20 per week. — Tracey Lien And Jennifer Van Grove, Philly.com, "Uber begins a push to get its drivers into electric cars," 28 June 2018 Her arrangements borrow from the history of abstraction without accruing too great a debt. — Roberta Smith, Martha Schwendener And Will Heinrich, New York Times, "What to See in New York Art Galleries This Week," 15 Mar. 2018 Some of that amount likely included accrued interest on some of the loans, the documents show. — Rob Barry, WSJ, "Glencore Gave Loans to Businesses Linked to Suspect Congo Dealings," 14 Jan. 2019 In a list of other examples, the commission also cited a provision that allows officers to use vacation time or other accrued time if they are suspended without pay, as long as the suspension is less than eight days, which many are. — Steve Miletich, The Seattle Times, "Fight over Seattle police contract goes to federal court," 3 Nov. 2018These example sentences are selected automatically from various online news sources to reflect current usage of the word 'accrue.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
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More Definitions for accrue
accrue
verbFinancial Definition of accrue
What It Is
To accrue is to record revenue and expenses in the periods in which they are incurred. Accruals, the result of accruing, are key components 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, accruing recognizes economic events in certain periods regardless of when actual cash transactions occur.
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 accruing provides 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, accruing allows 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 accruing is that it tends 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).
Source: Investing Answers
accrue
verb
English Language Learners Definition of accrue
See the full definition for accrue in the English Language Learners Dictionary
accrue
verb
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Legal Definition of accrue
Note: Statutes of limitations begin to run when a cause of action accrues.
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