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
The privilege is one that only be accrued through time. — SFChronicle.com, "In Oakland’s Laurel District, barbecue’s past collides with its present," 2 July 2019 Since 1995 the share of overall income accruing to the top 0.01% has roughly tripled (see chart). — The Economist, "A rare peep at the finances of Britain’s 0.01%," 29 June 2019 Employees receive 40 hours for sick time, 40 hours for jury duty and 40 hours for bereavement time off each calendar year, in addition to more than 12 holidays & three weeks’ accrued vacation time. — Debra Gelbart, azcentral, "Maracay Homes – Large Company Winner," 13 June 2019 The discount grew the longer Uber stayed private and now stands at 40%, including accrued interest, according to investor documents and people familiar with the... — Liz Hoffman, WSJ, "Count Goldman’s Millionaire Clients as Big Winners on Uber," 8 May 2019 Correction posted January 5, 2009 The original answer misstated the FDIC's policy on accrued interest. — The Christian Science Monitor, "Corrections," 4 Mar. 2019 The other 43 percent has accrued to business owners, mostly including corporations and their shareholders. — David Webber, The New York Review of Books, "Labor’s Last Hope?," 17 June 2019 Repair costs, which are still accruing, have already topped $1 million, according to State Fair General Manager Jerry Hammer. — Zekriah Chaudhry, Twin Cities, "Minnesota State Fair rushes to repair snow-collapsed cattle barn roof by opening day," 14 June 2019 Keeping this secret from your parents is burdening you with stress that will accrue over time. — Steven P. Dinkin, sandiegouniontribune.com, "A texting driver, a collision and a bad loan," 8 July 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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