Accrue vs. Accrued

Attribute	Accrue	Accrued
Definition	To accumulate or increase over time	Refers to something that has accumulated or increased over time
Verb form	Accrue	Accrued
Part of speech	Verb	Adjective
Present tense	Accrues	N/A
Past tense	Accrued	N/A

Accrue and accrued are two terms that are often used interchangeably, but they actually have distinct meanings and attributes. Understanding the differences between these two terms can help individuals use them correctly in various contexts. In this article, we will explore the attributes of accrue and accrued, highlighting their unique characteristics and usage.

Definition

Accrue is a verb that means to accumulate or increase over time. It is often used in financial contexts to describe the gradual accumulation of interest or income. For example, interest on a savings account accrues over time, leading to a higher balance. On the other hand, accrued is the past tense of accrue and refers to something that has accumulated or been added up to a total. It is commonly used in accounting to describe expenses or revenues that have been incurred but not yet paid or received.

Usage

Accrue is typically used to describe the process of something gradually increasing or accumulating. For instance, a company may accrue interest on a loan, meaning that the amount owed grows over time. Accrued, on the other hand, is used to describe something that has already accumulated or been added up. For example, a company may have accrued expenses that need to be paid in the future.

Examples

Here are some examples to illustrate the difference between accrue and accrued:

• Interest on the loan will continue to accrue until it is paid off.
• The company has accrued significant expenses this quarter.
• Over time, the benefits of the new policy will accrue to all employees.
• The accrued vacation days can be used at any time during the year.

Financial Implications

Accrue and accrued both have significant financial implications. Accrue is often used in the context of interest or income that grows over time. For example, a company may accrue interest on a loan, leading to a higher repayment amount. Accrued, on the other hand, is used to describe expenses or revenues that have been incurred but not yet paid or received. This can impact a company's financial statements and cash flow.

Legal Considerations

Accrue and accrued also have legal implications, especially in contracts and agreements. Accrue is often used to describe rights or benefits that gradually accumulate over time. For example, an employee may accrue vacation days based on their length of service. Accrued, on the other hand, is used to describe obligations or liabilities that have been incurred but not yet settled. This can impact legal disputes and financial settlements.

Conclusion

In conclusion, accrue and accrued are two terms that have distinct meanings and attributes. Accrue refers to the process of something gradually increasing or accumulating, while accrued describes something that has already accumulated or been added up. Understanding the differences between these two terms is important for using them correctly in various contexts, especially in financial and legal settings.