The interest due on a note or bond since the last interest payment was made. At the time of sale, the buyer pays the seller the bond's price plus accrued interest, which is calculated by multiplying the coupon rate by the number of days that have elapsed since the last payment.
It is interest owed but not yet paid. Accrued interest is listed as a liability on corporate balance sheets. It is also added to the price at which bonds are traded.