Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 19 - No. 35)
Which of the following statements is true about income that has been earned but not received?
It should be included in the calculation of profit for the year.
It is known as accrued income or accrued revenue.
The revenue will be recognized as soon as the payment is received.
The debit entry goes on the side of the accounting ledger.
Explanation
Income earned is included in profit calculation and known as accrued income. However, payment will be received in the following accounting period.
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