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. Learn what accrued income is and how to record it in the accounting period in which it is earned. See an example of interest income accrual and a quiz to test your knowledge. 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 ... Learn what accrued income is, its accounting treatment, journal entries, and examples. Understand its importance in financial reporting with real-world scenarios
