accrual

American  

[uh-kroo-uhl] / əˈkru əl /

noun

1. the act or process of accruing.

2. something accrued; accretion.

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accrual British  

/ əˈkruːəl /

noun

1. the act of accruing

2. something that has accrued

3. accounting a charge incurred in one accounting period that has not been paid by the end of it

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Usage

What does accrual mean? Accrual is the process or result of gaining more of a particular thing. Accrual is the noun form of the verb accrue, which means to grow and accumulate naturally or to be added periodically. Accrual is especially used in the context of finance to refer to the growth of interest in an account. Example: A retirement fund allows for the accrual of money over the course of your career so that you can support yourself once you stop working.

Other Word Forms

• nonaccrual
  adjective

Etymology

Origin of accrual

First recorded in 1875–80; accrue + -al ²

Explanation

That nest egg in the bank that gets bigger each year with interest? That's an accrual — a sum of money, or benefit of some kind, that gets bigger over time. Strictly speaking, an accrual doesn't have to be financial. Most religions believe you can obtain a spiritual accrual by doing good deeds on earth, for example. The origin of the word, as well as other similar terms such as accrue (the act of obtaining an accrual) come from the Latin word accrescere — meaning "to become larger."

Example Sentences

Accrual accounting would acknowledge how much the country owes future retirees.

From BusinessWeek • Dec. 6, 2012