Accrual: meaning, definitions and examples

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accrual

 

[ ษ™หˆkruหษ™l ]

Noun
Context #1 | Noun

finance accounting

Accrual refers to the accounting method where revenue and expenses are recorded when they are earned or incurred, regardless of when cash transactions occur. This approach allows for the recognition of economic events more accurately in the financial statements. It contrasts with the cash basis of accounting, where transactions are only recorded when cash is exchanged. Accrual accounting provides a clearer picture of a company's financial health by matching income earned with the expenses incurred in generating that income.

Synonyms

accumulation, growth, increase

Examples of usage

  • The company uses accrual accounting to better reflect its financial position.
  • Under the accrual method, expenses are recognized when incurred.
  • The accrual of interest is recorded monthly in the financial statements.

Translations

Translations of the word "accrual" in other languages:

๐Ÿ‡ต๐Ÿ‡น acumulaรงรฃo

๐Ÿ‡ฎ๐Ÿ‡ณ เค…เคตเคงเคฟ

๐Ÿ‡ฉ๐Ÿ‡ช Ansammlung

๐Ÿ‡ฎ๐Ÿ‡ฉ akumulasi

๐Ÿ‡บ๐Ÿ‡ฆ ะฝะฐั€ะฐั…ัƒะฒะฐะฝะฝั

๐Ÿ‡ต๐Ÿ‡ฑ naliczenie

๐Ÿ‡ฏ๐Ÿ‡ต ็™บ็”Ÿ

๐Ÿ‡ซ๐Ÿ‡ท accumulation

๐Ÿ‡ช๐Ÿ‡ธ acumulaciรณn

๐Ÿ‡น๐Ÿ‡ท birikim

๐Ÿ‡ฐ๐Ÿ‡ท ๋ˆ„์ 

๐Ÿ‡ธ๐Ÿ‡ฆ ุชุฑุงูƒู…

๐Ÿ‡จ๐Ÿ‡ฟ akumulace

๐Ÿ‡ธ๐Ÿ‡ฐ akumulรกcia

๐Ÿ‡จ๐Ÿ‡ณ ็ดฏ็งฏ

๐Ÿ‡ธ๐Ÿ‡ฎ akumulacija

๐Ÿ‡ฎ๐Ÿ‡ธ sรถfnun

๐Ÿ‡ฐ๐Ÿ‡ฟ ะถะธะฝะฐา›ั‚ะฐัƒ

๐Ÿ‡ฌ๐Ÿ‡ช แƒแƒ’แƒ แƒแƒ•แƒ”แƒ‘แƒ

๐Ÿ‡ฆ๐Ÿ‡ฟ yฤฑฤŸฤฑlma

๐Ÿ‡ฒ๐Ÿ‡ฝ acumulaciรณn

Etymology

The term 'accrual' originates from the Latin word 'accrescere', which means 'to grow or increase'. This word has evolved to refer specifically to the process of accumulating or gathering something over time, particularly in a financial context. The concept of accrual accounting dates back to the early 20th century when it emerged as a method to improve transparency and accountability in financial reporting. Accountants sought a method that could provide a more accurate representation of a company's financial situation by considering all revenues and expenses, regardless of when cash changes hands. Thus, accrual accounting became a standard practice in the field of accounting, especially with the adoption of generally accepted accounting principles (GAAP).

Word Frequency Rank

At position #13,838, this word is part of sophisticated English vocabulary. It's useful for academic or professional contexts where precise language is needed.