accrual


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Related to accrual: accrual basis, Accrual accounting

accrual

A term of art referring to the number of patients in a study or clinical trial.

accrual,

n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest.
References in periodicals archive ?
Because the price of insurance is available at the individual company level, we use individual company-level observations to examine the effects of accrual quality on the price of insurance.
The variables of interest are the accrual quality variables, which are both the estimated accruals quality from Model (4) and the observed reserve error-based accruals quality.
Most of the researches done by Barth, Chang & Scaffer, Alatar et al in the area of predicting future cash flow, show that profit is the better predictor than operational cash flow and also accounting profit has a greater role than operational cash flow in explanatory stock returns and accruals flow has more power than cash flow for predicting future cash.
The purpose of this study is to identify the relationship between the pricing of accruals (discretionary and non-discretionary) and companies' growth in Tehran stock exchange.
Another approach to converting from the cash basis to accrual basis operating income involves working with the changes in the account balances.
Two approaches can be used to convert cash basis income to accrual basis income.
As a consequence, companies with high (low) levels of accruals obtain negative (positive) abnormal returns, a phenomenon known as accrual anomaly.
2003) finds that in countries with strong legal protection, managers are less aggressive to manage earnings through accrual manipulation.
Instead, we rely on the abnormal accrual measure and, because of the mechanical correlation between extreme earnings changes and abnormal accruals, we try to differentiate between cases where abnormal accruals are most likely to be associated with earnings management and cases where they are least likely to be associated with earnings management.
They hypothesize that the accrual anomaly documented by Sloan (1996) is a growth effect caused by diminishing returns on investment or conservative accounting.
Conceptually, the more variability there is in the correspondence between an entity's accruals and its cash flows over the entity's operating cycle, the lower the entity's AQ and therefore the lower the entity's accounting quality.
Larger customer organizations in all industries often have a variety of unique accrual policies and rules requirements within the same company due to union contracts, multiple and acquired divisions, and different operating locales.