Accrued income is income that has been
A) received but not earned.
B) earned but not received.
C) earned and received.
D) budgeted for the fiscal period.

Question

Quizplus · Accepted Answer

Accrued income is income that has been earned but not yet received. This means that even though the income has not yet been physically received, it has been earned through services or products provided. Option A is incorrect because if income has been received but not earned, then it is not accrued income. Option C is incorrect because if income has been earned and received, then it is not accrued income. Option D is incorrect because if income has been budgeted for the fiscal period, it does not necessarily mean that it has been earned yet.

Accrued Income Is Income That Has Been