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accrual

FinanceLv.4 (900)noun
Definition

the recognition of revenue or expenses when earned or incurred, before cash moves

Examples

Under accrual accounting, costs are recognized before billing.

An interest accrual is posted to the books each month.

Collocations
accrual accountingan interest accrualthe accrual of expenses
Paraphrase
earned-but-unpaid recognitionaccumulation
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