Definition: Accruable means "capable or able to repay" in a legal or financial context. It typically refers to an amount that is sufficient or capable of being repaid, particularly by a lender or borrower. In accounting terminology, it can be used when referring to the ability of a company to make payments on its debts. For example, if a business owner cannot pay their loan obligations and needs funds from creditors, the entity might argue that it's an accrual, as it is capable of repaying those payments in the future. In financial terms, it can be used when discussing investments or assets that are considered to have potential for profit. For instance, if you invest in a stock with a high potential for growth and expect profits to come from the investment over time, you might argue that it's an accrual because of its future earning capacity. In general, this term is often used in contexts where one company or entity can afford to repay its creditors, such as a bank loan.
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