Accrued income: Definition of Accrued Income Accrued income is

Definition of Accrued Income Accrued income is an amount that: A company has earned The company has a right to receive The collection is probable Has not yet been recorded in the general ledger accounts Under the accrual basis of accounting, accrued income is recorded with an accrual adjusting entry prior to issuing the financial statements. Example of Accrued Income One example of accrued income is the interest a company earns on a bond investment. To illustrate, let’s assume that a ... 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. Learn how to record accrued income , which is income earned but not received in a particular accounting period, with examples and journal entries. Find out how to treat accrued income in financial statements and books of finance. Accrued Income is the income earned by the company or an individual during the accounting year but not rec eived in that same accounting period. It can be any income for which the company gave goods and services to the customer, but customer payment is pending.