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Question
Write one Word / Term / Phrase for the following statement.
The income which is earned during the year, but it has not been received during the year.
One Word/Term Answer
Solution
Accrued Income/Outstanding Income
Explanation: Certain incomes are earned during the current year but are not actually received by the end of the current year. Such incomes are known as ‘accrued incomes’ or outstanding income, i.e. income which is earned but yet to be received. For example, subscription outstanding at the end of current year is accrued income. It is added to the amount of subscriptions on the credit side of Income and Expenditure Account and is also shown on the Assets side of the Closing Balance Sheet.
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Effects of Adjustments-Accrued Income
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State the meaning of Accrued income
