Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 9 - No. 30)
Why is it important to make adjustments for accrued income?
To match income earned with the expenses incurred in the same accounting year.
To ensure income is recognized when it is earned, regardless of when cash is received.
To accurately reflect the company's financial performance.
To increase assets in the balance sheet.
Explanation
Adjusting for accrued income ensures financial accuracy and proper revenue recognition.
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