Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 23 - No. 44)
What is the fundamental concept that guides the recognition of accrued income?
When cash is received.
When an invoice is generated.
When the service has been performed or the good has been provided.
When the contract is signed.
Explanation
Accrued income is recorded when it has been earned, even if cash has not been received yet.
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