accrue

verb ac·crue \ ə-ˈkrü \

Updated on: 13 May 2018

Definition of accrue

accrued; accruing

intransitive verb

1 : to come into existence as a legally enforceable claim

2 a : to come about as a natural growth, increase, or advantage

the wisdom that accrues with age

b : to come as a direct result of some state or action

rewards due to the feminine will accrue to me
—Germaine Greer

3 : to accumulate or be added periodically

interest accrues on a daily basis

transitive verb

: to accumulate or have due after a period of time

accrue vacation time

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accruable

play \-ˈkrü-ə-bəl\ adjective

—

accruement

play \-ˈkrü-mənt\ noun

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Examples of accrue in a Sentence

I'll get back all the money I invested, plus any interest and dividends that have accrued.
investments that have accrued interest and dividends

Recent Examples of accrue from the Web

The owner of a downtown West Dundee bar has accrued 10 liquor code violations since February 2017, including patrons who were over-served and later arrested for DUI after leaving the business, officials said.

— erin sauder, Elgin Courier-News, "Bikini Bottom Bar facing 10 liquor code violations since 2017, West Dundee officials say," 8 May 2018
She's entered the lab with one goal: to accrue an army.

— sandra upson, WIRED, "Westworld Recap, Season 2 Episode 2: The Façade Is Crumbling," 30 Apr. 2018
There is even an opportunity to accrue retirement benefits.

— vince ellis, Detroit Free Press, "Detroit Pistons Gaming Team - and NBA - create bold eSports gambit," 29 Apr. 2018
Gronkowski, the horse, has won four straight starts in Great Britain to accrue enough qualifying points for the Kentucky Derby but is seen as a heavy long shot to win the race.

— matt bonesteel, chicagotribune.com, "Gronkowski the horse has a 'minor setback,' putting Kentucky Derby in jeopardy," 23 Apr. 2018
Ritter's run on Breaking Bad, which was just beginning to accrue massive acclaim, changed the course of her career.

— scott feinberg, The Hollywood Reporter, "'Awards Chatter' Podcast — Krysten Ritter ('Jessica Jones')," 17 Apr. 2018
Last year, 463 of the 645 students who graduated accrued 10 or more Pathway credits, earning a special designation on their transcripts, a sort of postsecondary résumé-builder.

— sarah gonser, NBC News, "Students are being prepared for jobs that no longer exist. Here's how that could change.," 12 Apr. 2018
Over time, with good health, James is likely to accrue much higher career totals in scoring and other categories than Jordan did — and growing acceptance of advanced statistical measures has further bolstered his case.

— dylan scott, Vox, "LeBron James, the most important athlete in America, explained," 3 Apr. 2018
So what accounts for the unparalleled loyalty Action News has been able to accrue over the years?

— rob tornoe, Philly.com, "Philadelphia TV Ratings: 6ABC tops NBC10, despite Olympics and Super Bowl," 5 Mar. 2018

These 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.

Origin and Etymology of accrue

Middle English acrewen, acruwen, probably borrowed from Anglo-French *acreue "increase," noun derivative from feminine of acreu, past participle of acreistre "to increase, grow," going back to Latin accrēscere, from ad- ad- + crēscere "to grow" — more at ¹crescent

NEW! Time Traveler

First Known Use: 15th century

in the meaning defined at sense 2

See Words from the same year

Financial Definition of ACCRUE

accrue

verb

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