What is "accrual"?

Answer by  Nancy (578)

This is a term that generally means a percentage of interest that is added into your account changing the original amount you had to a slightly higher amount depending on the percentage the bank gives in interest.

Answer by  JasonHadley (245)

Accrual generally refers to accumulation. From an accounting perspective, revenue is recognized (accrued) when it is done before cash is received. Conversely, expenses are recognized before cash is paid out. From a finance perspective, it has more to do with adding together interest or different investments over a period of time.