Question

Write one Word / Term / Phrase for each of the following statement.

The income which is earned during the year, but it has not been received during the year.

Answer 1

Accrued Income/Outstanding Income

Explanation: Certain incomes are earned during the current year but are not actually received by the end of the current year. Such incomes are known as ‘accrued incomes’ or outstanding income, i.e. income which is earned but yet to be received. For example, subscription outstanding at the end of current year is accrued income. It is added to the amount of subscriptions on the credit side of Income and Expenditure Account and is also shown on the Assets side of the Closing Balance Sheet.