0
Accrued revenue and debtors are similar in that they are assets. In both cases the revenue is earned before the cash is received, so they present a resource controlled but the entity, which will bring a future economic benefit in the next 12 months. However, they are different in a subtle but different/important way. If the customer has goods and the invoice, then a credit sale has occurred, and a debtor should be recognised. However, if the revenue relates to a transaction other that sales, and the customer has not been sent an invoice, the accrued income has been earned.
Hope this helps :)
Add your answer:
Earn +20 pts
What is the difference between accrued income and income in advance?
Accrued income is that where income is earned but amount is not received while income in advance is reverse of accrued income where amount is received in advance but services not provided yet.
Difference between accrued income and outstanding income?
Accrued Income is income that is earned by provided a service or the sale of a product but hasn't been received yet. Outstanding income is income that is yet to be earned.
What is the difference between Accrued income tax and deferred income tax?
we dont have an idea either. thanks wharton
Journal for Accrued income?
[Debit] Accrued income receivable [Credit] Accrued income
What is the journal entry accrued income?
[Debit] Accrued income receivable [Credit] Accrued income
Journal entry for accrued income?
[Debit] Accrued income receivable [Credit] Accrued income
What does accrued income mean?
Accrued Income is an income already incurred but no payment is received yet.
Is accrued income posted as cr to accrued income and debit to sales account net?
no its the opposite Accrude income Dr. Sales Cr. Accrued income is income that has incurred but not yet invoiced.
What is the difference between accouts receivable and accrued receivables?
Accounts Receivable is related to the amount receiable from the debtors against invoice raised on them against Inoice. The kind of serices already rendered or materials supplied to them. Accrued Receiable is related to icome receivable from an agreed future contract to receive amount on a given date. Examples are rent receiable, interest on deposits, etc. The amount is shown as income after the due date.
How do you treat accrued income?
income receivable
What is the difference between consumption and income?
the difference between income and consumption
How is accrued income resented in the financial statement?
Accrued income is income which the company has earnd but not yet received and shown as a current asset in balance sheet.
