What Is Accrued Income? Accrued income is the money a company has earned in the ordinary course of business but has yet to be received, and for which the invoice is yet to be billed to the customer. Mutual funds or other pooled assets that accumulate income over a period of time—but only pay shareholders
What Is Accrued Interest? In accounting, accrued interest refers to the amount of interest that has been incurred, as of a specific date, on a loan or other financial obligation but has not yet been paid out. Accrued interest can either be in the form of accrued interest revenue, for the lender, or accrued interest expense
What Is Accrued Interest Adjustment? Accrued interest adjustment lowers a fixed-income security buyer’s taxable interest income by reducing the extra interest amount that is paid to them. Key Takeaways Accrued interest adjustment lowers a fixed-income security buyer’s taxable interest income by reducing the extra interest amount that is paid to them.Accrued interest adjustment is subject
What Is Accrued Liability? The term “accrued liability” refers to an expense incurred but not yet paid for by a business. These are costs for goods and services already delivered to a company for which it must pay in the future. A company can accrue liabilities for any number of obligations and are recorded on
What Is Accrued Market Discount? Accrued market discount is the gain in the value of a discount bond expected from holding it for any duration until its maturity. Because discount bonds are sold below face value, it is expected that they will gradually rise in market price until reaching maturity. Key Takeaways A discount bond
What Is an Accrued Monthly Benefit? An accrued monthly benefit is the dollar amount that an employee can expect to receive as a pension benefit after retiring. The accrued monthly benefit is based primarily on the employee’s years of service and salary history. Key Takeaways Companies that offer pensions generally have a vesting period before
What Is Accrued Revenue? Accrued revenue is revenue that has been earned by providing a good or service, but for which no cash has been received. Accrued revenues are recorded as receivables on the balance sheet to reflect the amount of money that customers owe the business for the goods or services they purchased. Accrued
What Is Accumulated Benefit Obligation (ABO)? Accumulated benefit obligation (ABO) is the approximate amount of a company’s pension plan liability at a single point in time. ABO is estimated based on the assumption that the pension plan is to be terminated immediately; it does not consider any future salary increases. This differs from the projected
What Is Accumulated Depreciation? Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its life. Accumulated depreciation is a contra asset account, meaning its natural balance is a credit that reduces the overall asset value. Key Takeaways Depreciation is recorded to tie the cost of using a long-term capital
What Is Accumulated Earnings and Profits (E&P)? Accumulated earnings and profits (E&P) is an accounting term applicable to stockholders of corporations. Accumulated earnings and profits are a company’s net profits after paying dividends to the stockholders, serving as a measure of the economic ability of a corporation to pay such cash distributions. Key Takeaways Accumulated
