Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 10 - No. 25)

An accrued income should be recognized as accrued income in the accounts and included in profit before tax. If it is taxed, then it will be a current asset of the business.
True
False
Cannot be determined
None of the above

Explanation

Accrued income, when recognized, increases the value of a current asset (like accounts receivable).

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