What Is Accrued Revenue?
Income earned but not yet invoiced or received at the end of an accounting period.
Detailed Explanation
Recorded as an asset on the balance sheet until invoiced. Common when work is completed before billing cycles close.
Example
A consultant completes two weeks of work in December but invoices in January, recording accrued revenue at year-end.
Why It Matters
Ensures financial statements reflect all earned income in the correct period.
Related Resources
Related Accounting Basics Terms
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