Accrued Income

Accrued income is income that has been earned but not yet received. It is usually income earned in the current period but for which payment will be received in the future period. Examples of accrued income include rent, dividends, and interest on loans.

The accrual income is recorded on the books of accounts as a current asset. It is not recorded as revenue until the cash is actually received. Instead, it is recorded as an account receivable. The accrued income is then accounted for in the period when the cash is received.