Pronunciation: /əˈkruəl/

Definitions of accrual

noun the act of accumulating or receiving something over time, especially benefits or payments

Example Sentences

A1 Accrual of vacation days happens gradually over time.

A2 The company uses accrual accounting to track its expenses.

B1 Accruals are an important part of financial reporting for businesses.

B2 The accrual of interest on the loan is calculated monthly.

C1 Accruals can sometimes lead to discrepancies in financial statements if not properly managed.

C2 The accrual of revenue is recognized when it is earned, regardless of when payment is received.

adjective related to the process of accruing something

Example Sentences

A1 The company uses an accrual accounting method to track its expenses.

A2 Accrual basis accounting recognizes revenue and expenses when they are incurred, regardless of when cash is exchanged.

B1 Accrual accounting provides a more accurate picture of a company's financial position compared to cash basis accounting.

B2 Accruals are adjustments made to ensure that expenses and revenues are recorded in the period they are earned or incurred, rather than when cash is exchanged.

C1 Accruals can include items such as accounts receivable, accounts payable, and accrued expenses.

C2 Accrual accounting requires a deep understanding of financial principles and regulations to ensure accurate reporting.

Examples of accrual in a Sentence

formal The company uses accrual accounting to record revenue and expenses when they are earned or incurred, regardless of when the cash is actually received or paid.

informal Accrual accounting is like keeping track of money you've earned but haven't received yet.

slang I'm not sure how the whole accrual thing works, but it's supposed to make the financial statements more accurate.

figurative Just like interest accrues over time, so do the company's expenses and revenues in accrual accounting.

Grammatical Forms of accrual

plural

accruals

present tense

accrues

future tense

will accrue

perfect tense

has accrued

continuous tense

is accruing

singular

accrual

positive degree

more accrual

infinitive

to accrue

gerund

accruing

participle

accrued

Origin and Evolution of accrual

First Known Use: 1601 year
Language of Origin: Latin
Story behind the word: The word 'accrual' comes from the Latin word 'accrescere' which means 'to grow or increase'.
Evolution of the word: Originally used in financial contexts to refer to the accumulation of interest or income over time, the term 'accrual' has since expanded to include the concept of gradual growth or accumulation in various fields such as accounting, law, and business.