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If a company earns interest on a savings account, the interest accrues over time until it is withdrawn.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.