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Accrued income - class-XI
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Accrued income is also been called as ________.
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A
Outstanding income
💡 Explanation:
It may happen that certain items of income such as interest on loan, commission, rent, etc. are earned during the current accounting year but have not been actually received by the end of the same year. Such incomes are known as accrued income. It is the income which has been earned during a particular accounting period, also known as outstanding income.
Examples include accrued interest, accrued rent (to be received), etc. Accrued income is recorded in the books at the end of an accounting period to show true numbers of a business.