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Ann225 Posted 8 years ago
Grammar

Accrued items

Hi,

I'm aware that this question is a bit too technical but perhaps you can still help me.

When I crash a car that I use for business and I want to account for it on my balance sheet, I need to estimate the amount my insurance company will pay me. Let's say that my estimate is too low and the insurance company ends up transferring more money to my account than I anticipated. I wonder what the estimate is called in accounting. I scoured the Internet and I found the expression 'accrued item'. I'm not sure though if it can be applied to the situation I've just described.

Thank you.

  

Top answer

Ann225 I scoured the Internet and I found the expression 'accrued item'. I would use compensation or reimbursement. As you said, this is very technical and other terms may be more appropriate.

— Ivanhr

  • Ann225 I scoured the Internet and I found the expression 'accrued item'.
  • I would use compensation or reimbursement.
  • As you said, this is very technical and other terms may be more appropriate.
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2 Answers
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Ann225I scoured the Internet and I found the expression 'accrued item'.

I would use compensation or reimbursement. As you said, this is very technical and other terms may be more appropriate.

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Ann225Let's say that my estimate is too low and the insurance company ends up transferring more money to my account than I anticipated. I wonder what the estimate is called in accounting.

I can't imagine why it needs to be called anything except an estimate.

The estimate would be recorded as a debit in some kind of receivable account such as "Estimate

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