Definition

This term refers to a way of accounting that records income and expenses when they happen, not when money is actually exchanged.

Example

The accrual accounting method provides a more accurate financial picture of a company's performance.

Conversation

Have you ever heard of accrual accounting?

Yeah, I think it’s about recognizing income when it's earned, right?

Exactly! It's so different from cash accounting, isn't it?

For sure, it seems more accurate for tracking finances.

Synonyms & Antonyms

Definition

A noun that refers to the process of gradually gathering or increasing something over time, often used in financial contexts to describe the accumulation of income or expenses.

Example

The accrual of interest on the loan will increase the total amount owed over time.

Conversation

Have you seen how quickly my savings are growing lately?

Yeah, it seems like you're really focusing on your financial goals.

I think it's mostly due to the accrual from my interest rates.

Root Explanation

Accrual is derived from the Latin "accruere" (meaning to increase or grow) which is formed from "ad-" (meaning to) and "cruere" (meaning to grow). The term refers to the process of accumulating or increasing over time, particularly in financial contexts.

Memory Tip

Think of the idea of something 'growing' ('cruere') as it 'adds on' ('ad-') over time — that's what accrual means.

Visually Confused Words