• Accumulation is the accumulation of interest, income or expenses over time - a popular example is interest on a savings account.

  • When something accumulates financially, it is, in fact, accumulated in order to be paid or received in the future.
  • Accrual most often refers to the concepts of accrual accounting, where there are accrued income and accrued expenses.
  • Accrued income is when a company has sold a product or service but has not yet paid for it.
  • Accrued expenses are expenses that are recognized before they are paid, such as certain interest expenses or salaries.