Accrue

AAA

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 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.

RELATED TERMS
  1. Accrual Accounting

    An accounting method that measures the performance and position ...
  2. Accrued Expense

    An accounting expense recognized in the books before it is paid ...
  3. Accrued Interest

    1. A term used to describe an accrual accounting method when ...
  4. Savings Account

    A deposit account held at a bank or other financial institution ...
  5. Accrued Income

    Income that is earned in a fund or by company by providing a ...
  6. Add-On Interest

    A method of calculating interest whereby the interest payable ...
Related Articles
  1. What is accrued interest, and why do ...
    Investing

    What is accrued interest, and why do ...

  2. If different bond markets use different ...
    Investing

    If different bond markets use different ...

  3. Advanced Financial Statement Analysis
    Options & Futures

    Advanced Financial Statement Analysis

  4. Bundle Your Insurance For Big Savings
    Home & Auto

    Bundle Your Insurance For Big Savings

comments powered by Disqus
Hot Definitions
  1. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  2. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  3. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  4. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  5. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  6. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
Trading Center