accrue define
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. Accrual accounting is an accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. The general idea is that economic events are recognized by matching revenues to expenses (the matching principle) at the time in which the transaction occurs rather than when payment is made (or received). Accrual accounting is an accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. Accrual accounting is an accounting method that measures the performance and position of a company by recognizing economic events regardless of when cash transactions occur. Topics What's New Definition of accrue for English Language Learners. : 1  to increase in value or amount gradually as time passes : to grow or build up slowly. : 2  to come to or be given to someone. Definition of accrue for English Language Learners : to increase in value or amount gradually as time passes : to grow or build up slowly : to come to or be given to someone accruing. 1  intransitive verb. 2  1 : to come into existence as a legally enforceable claim. 3  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. 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. 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. Define accrue: to come into existence as a legally enforceable claim; to come about as a natural growth, increase, or advantage — accrue in a sentence to come into existence as a legally enforceable claim; to come about as a natural growth, increase, or advantage… Recent Examples of accrue from the Web. 1  Over time, the best gains are accrued by limiting losses, and that is what separates Federer and Nadal from the field this year. 2  Within hours of the tweet going viral— all thanks to the leader of the free world — over 8,000 responses have accrued.
The definition of accrue is to record revenue and expenses in the periods in which they are incurred.