Was Does Accrued Mean?

Accrual of something is, in finance, the adding together of interest or different investments over a period of time. It holds specific meanings in accounting, where it can refer to accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting.

What does it mean if something is accrued?

To accrue means to accumulate over time—most commonly used when referring to the interest, income, or expenses of an individual or business. Interest in a savings account, for example, accrues over time, such that the total amount in that account grows.

Does accrued mean paid?

The term "accrued" means to increase or accumulate. When a company accrues expenses, this means that its portion of unpaid bills is increasing. Following the accrual method of accounting, expenses are recognized when they are incurred, not necessarily when they are paid.