What is an accrued income?

Accrued income refers to the income that has been earned but not yet received or recorded in the accounting records. It represents the revenue that has been recognized by a company for providing goods or services, but the payment for that revenue has not been received yet. Accrued income is typically recorded as a current asset on the balance sheet and is recognized as revenue in the income statement. Once the payment is received, the accrued income is reversed, and the cash is recorded.