Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 4 - No. 11)
What is the effect of accrued income on the income statement?
Increase in income and increase in profits
Decrease in income and decrease in profits
No effect on profits
Increase in income and decrease in profits
Explanation
Accrued income leads to an increase in both income and profit because it represents revenue earned but not yet received.
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