Accrue

Dictionary Says

Definition of 'Accrue'

The ability for something to accumulate over time. In finance, "accrue" is most commonly used when referring to interest, income and expenses of an individual or business. Interest in your savings account accrues so that over time the total amount in your account grows.

Investopedia Says

Investopedia explains 'Accrue'

In practice, the word "accrue" is often synonymous with the concept of accrual accounting, which has become the standard accounting practice for most companies. This form of accounting measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur, which gives a better picture of the company's financial health.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Accrual Accounting

    An accounting ...
  2. Accrued Expense

    An accounting ...
  3. Accrued Income

    Income that is ...
  4. Accrued Interest

    1. A term used ...
  5. Add-On Interest

    A method of ...
  6. Savings Account

    A deposit ...
  7. Liquidator

    In the most ...
  8. Economic Profit (Or Loss)

    The difference ...
  9. Profit

    A financial ...
  10. Operating Income

    The amount of ...

Articles Of Interest

  1. What is accrued interest, and why do I have to pay it when I buy a bond?

  2. How do I know which day-count convention is used in a given bond market?

  3. Advanced Financial Statement Analysis

    Learn what it means to do your homework on a company's performance and reporting practices before investing.
  4. The Impact Of Combining The U.S. GAAP And IFRS

    The convergence of accounting standards is changing the attitudes of CPAs and CFOs toward harmonization of international accounting.
  5. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  6. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  7. CPA, CFA Or CFP® - Pick Your Abbreviation Carefully

    A couple of letters can mean a big difference. Find out which designation you need and how to get it.
  8. Using Enterprise Value To Compare Companies

    Learn how enterprise value can help investors compare companies with different capital structures.
  9. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  10. Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center