Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 21 - No. 30)
What is the effect of accrued income on the financial statements?
Increases profit for the year.
Increases assets.
Decreases profit for the year.
Decreases liabilities.
Explanation
Accrued income increases both assets and profit because the service has been rendered, but not yet paid.
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