Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 22 - No. 41)
When making adjustments, which of the following is true of accrued income?
Increases income on the income statement.
Decreases assets on the financial position.
Increases assets on the financial position.
Has no impact on financial statements.
Explanation
Accrued income increases revenue on the income statement and increases assets on the balance sheet as the amount is earned but not yet received.
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