Accrued income: Learn what accrued income

Learn what accrued income is, its accounting treatment, journal entries, and examples. Understand its importance in financial reporting with real-world scenarios An income that has been earned but not yet received in the current financial year is called Accrued Income . It is recorded with an adjusting entry to recognize the income earned during the accounting period. Accrued Income is one of the several terms that are technically related to corporate finance and accounting. Read on to know the definition, what Accrued Income is, and how it works in reality. Accrued revenue helps match income with correct accounting period, even if cash hasn’t been received. It follows accrual principle in GAAP and is critical for preparing accurate financial statements.