Adjustments for accrued income always involve a credit to a revenue account.

Question

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Accrued income is revenue that has been earned but not yet received or recorded. Adjustments are necessary at the end of an accounting period to recognize this income in the financial statements. The adjustment involves debiting an accrued receivables account and crediting a revenue account. Therefore, the statement that adjustments for accrued income always involve a credit to a revenue account is true.

Adjustments for Accrued Income Always Involve a Credit to a Revenue