Accruable

Describing something that can accumulate or grow over time, typically referring to benefits, obligations, or rights. It signifies the potential for something to increase incrementally, often through the passage of time or the occurrence of specific events. This term highlights the gradual build-up of value, liability, or entitlement, emphasizing the future availability of the accrued item. It's frequently used in accounting and finance to describe interest, dividends, and expenses that are recorded before they're paid.

Accruable meaning with examples

• Interest on a savings account is accruable daily, representing the earned but not yet received amount. The company recognized an accruable expense for employee vacation time, as the benefit built up throughout the year. The deferred revenue from subscription services is accruable each month as customers are given services, and it isn't recognized at the beginning. Tax liabilities, for example, are accruable from the moment the income is generated.