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 Accrued income is revenue earned but not received, recorded as an asset on the balance sheet. Learn how to calculate, record and report accrued income , and how it affects profitability and cash flow. 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. 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.