Definition:
Accrue means to increase or accumulate over time. In accounting, it often refers to the gradual buildup of income, expenses, or liabilities. For example:
- Accrued interest: Interest that has been earned but not yet paid.
- Accrued vacation time: Vacation time that has been earned but not yet taken.
- Accrued taxes: Taxes that have been incurred but not yet paid.
Example:
If a company earns interest on a savings account, the interest accrues over time until it is withdrawn.
In essence, to accrue means to grow or accumulate over time, often in a gradual or continuous manner.
