Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 29 - No. 28)
What are the key financial statement implications when accounting for accrued income?
Increase in assets (Accounts Receivable).
Increase in liabilities (Unearned Revenue).
Increase in equity (Retained Earnings).
Increase in revenue on the income statement.
Explanation
Accrued income represents income earned but not yet received in cash. This increases assets through accounts receivable, increases equity, and increases revenue.
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