noun

accrual

uh-KROO-uhl

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Accrual (noun) means an amount of income or expense that has been earned or incurred but not yet received or paid, recorded in the accounts for the period it belongs to. Example: “The auditors questioned a large accrual for legal fees at the year end.”

noun

An amount of income or expense that has been earned or incurred but not yet received or paid, recorded in the accounts for the period it belongs to.

"The auditors questioned a large accrual for legal fees at the year end."

"We post an accrual each month for the electricity bill that arrives in arrears."

The gradual build-up of something over time, such as interest, holiday entitlement or benefits.

"Holiday accrual starts on your first day, not after probation."

"Interest accrual continues while the loan is in dispute."

How to use accrual

Learner’s notes

In plain EnglishMoney or time that is building up before it is actually paid or taken.

When to use it

Formal. Standard in accounting, payroll and finance.

Memory tip

Think 'grow' — the Latin root crescere is the same one in crescent and increase.

Trace the full origin ↓

Easily confused with

accrual / prepayment accrual / accretion accrual / provision

Common pairings

accrual accounting accrual basis holiday accrual interest accrual accruals and prepayments

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C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

C2 · Advanced serendipity Fortunate discoveries made entirely by accident.

Gen Z slang rizz Charm — the ability to attract a romantic interest.

B2 · Intermediate empathy The capacity to share another person’s feelings.

C1 · Advanced nonchalant Casually calm and relaxed; unconcerned.

Internet slang delulu Delusional — believing something against the odds.

Etymology nostalgia Greek nostos “return home” + algos “pain”.

Test yourself on “accrual” A quick quiz — meaning, synonyms & usage →

Fill the gap

Can you complete this real example?

The auditors questioned a large _____ for legal fees at the year end.

Etymology

From accrue, from Old French acreue 'increase', from Latin accrescere 'to grow towards', from ad- + crescere 'to grow'.

Origin: Latin

Synonyms

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provision liability accumulation build-up growth accruement

Related words

service development provide increase collection growing plant supply

Rhymes for accrual

dual equal usual sexual manual annual actual ritual mutual casual visual unusual

See all rhymes for accrual →

Frequently asked questions

What is the difference between accrual and cash accounting?

Accrual accounting records income and costs when they are earned or incurred, whatever date the money moves. Cash accounting records them only when cash actually comes in or goes out. Accrual gives a truer picture of a period's performance, which is why it is required for most larger companies.

What is the difference between an accrual and a prepayment?

An accrual is for something you have received but not yet paid for, so it is a liability. A prepayment is for something you have paid for but not yet received, so it is an asset. They are mirror images of the same timing problem.

What does holiday accrual mean?

It means paid leave builds up gradually as you work, usually a fixed fraction of a day for each month or hour completed, rather than being granted all at once at the start of the year.

What is the meaning of accrual?

"accrual" (noun) means an amount of income or expense that has been earned or incurred but not yet received or paid, recorded in the accounts for the period it belongs to.

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service development provide increase collection growing plant supply