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What is the accruals (matching) concept? How do you record an accrued expense? How do you record a prepayment? How do accruals and prepayments affect the financial statements?
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Financial Accounting › Accruals & Prepayments

What is accrued income?

Intermediate

Answer

Income earned in the period but not yet invoiced or received; recognised as revenue and a receivable.
Dr Accrued Income (asset) 500
   Cr Revenue 500
Real-world example Interest earned but not yet credited by the bank at year-end.
All 5 Accruals & Prepayments questions