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Definition of accrue
accrued
;accruing
intransitive verb
1 : to come into existence as a legally enforceable claim
2a : to come about as a natural growth, increase, or advantage the wisdom that accrues with ageb : 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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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
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If Macron’s project pulls the pillars of the post-war order from the premature graves to which they have been assigned, the benefits will accrue to us all.
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Waters emphasized that his group is not advocating a reduction in benefits of current retirees or benefits accrued to date by current employees who have yet to draw benefits.
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The analysis shows that nearly half the savings from the plan would accrue to the richest 1 percent of taxpayers.
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On the third day of Firefly—so hot not even a double shower could wash away the second skin of sweat/sunscreen/bug spray/miscellaneous filth one accrues at a camping-heavy music festival—
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Monster Hunter has accrued a mesh of complex systems over the years, explains Kaname Fujioka, the game's executive director.
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Solar panels meanwhile can accrue dust and become less efficient, and also stop working entirely at night.
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But New York and other northern cities accrued vast wealth from slave labor and profited for centuries from dealings in the slave trade.
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One or two days each week are dedicated to classwork at a local community college or technical school, but no college debt is accrued.
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.
Financial Definition of ACCRUE
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).
ACCRUE Defined for English Language Learners
accrue
playDefinition of accrue for English Language Learners
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: to increase in value or amount gradually as time passes : to grow or build up slowly
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: to come to or be given to someone
Law Dictionary
accrue
playLegal Definition of accrue
accrued
accruing
intransitive verb
1 : to come into existence as an enforceable claim : vest as a right action…does not accrue until the plaintiff knew or reasonably should have known that he may have suffered injury — National Law Journal Editor's note: Statutes of limitations begin to run when a cause of action accrues.
2 : to come by way of increase or addition : arise as a growth or result —usually used with to or from advantages accruing to society from the freedom of the press interest accrues to the seller as a result of the delay
3 : to be periodically accumulated in the process of time whether as an increase or a decrease the accruing of taxes allowing the receivable interest to accrue
transitive verb
1 : to accumulate or have due after a period of time authorized by law to accrue leave in the maximum amount of 90 days
2 : to enter in the books as an accrual
Origin and Etymology of accrue
Middle French accreue increase, addition to a property, from feminine of accreu, past participle of acreistre to increase
Learn More about accrue
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See words that rhyme with accrue Spanish Central: Translation of accrue Nglish: Translation of accrue for Spanish speakers Britannica English: Translation of accrue for Arabic speakers
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