Definition
Costs incurred but not yet paid, recorded as liabilities on the balance sheet because accrual accounting insists on acknowledging unpleasant realities before the bills arrive. Financial statements' way of saying 'don't get too excited, you owe money.'
Example Usage
We accrued $500,000 in legal expenses for the ongoing litigation, ruining what would have been a profitable quarter.
Origin
From Latin 'accrescere' meaning 'to grow,' adopted into accrual accounting methodology in early 20th century
Fun Fact
Year-end accrued bonuses are often 'estimated' in ways that magically help companies hit earnings targets, then quietly adjusted in the following quarter.
Source: Accrual accounting principles
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