Q147
Income earned but not received is known as ________
A.
Advance income
B.
Proposed income
C.
Earned income
D.
Accrued income
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Accrued income is income which has been earned but not yet received. Income must be recorded in the accounting period in which it is earned. Therefore, accrued income must be recognized in the accounting period in which it arises rather than in the subsequent period in which it will be received.