If a company has earned income which has not been received in cash at the end of the accounting period an adjustment should be made which will:

Question

Quizplus · Accepted Answer

When income is earned but not yet received, it is recorded as accrued income. This requires debiting an asset account (Accrued Income or Accounts Receivable) and crediting an income account to recognize the revenue earned.

If a Company Has Earned Income Which Has Not Been