Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 44 - No. 15)
If a business has earned but not received income, how is that reflected in the accounting system?
The income is not recorded.
It's recorded as a liability.
It's recorded as accrued income or accrued revenue.
It's recorded as unearned revenue.
Explanation
Earned but unreceived income is classified as accrued income.
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