Accrued Income is shown _________________.

By way of deduction in the income statement

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As a current asset

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As a long-term liability

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As a current liability

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Solution

The correct option is B As a current asset
Accrued income is that income which is earned but is not yet received. The company is entitled that is has a right on that income but has not yet received the same. This is an asset for the company. It is shown under the head current assets as it is expected to be received within a year.

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