what is accrued income

Accrued income is a term used in accounting to describe income that has been earned but not yet received. It is the money a company has earned in the ordinary course of business but has yet to be received, and for which the invoice is yet to be billed to the customer. Accrued income is recorded on the books when it is earned, in accordance with the accrual accounting method. It is considered a current asset because it is expected to be collected within one year or less. Accrued income is listed in the asset section of the balance sheet because it represents a future benefit to the company in the form of a future cash payout. Examples of accrued income include interest on investments, rent, and services performed but not yet billed. Accrued income is also referred to as accrued revenue.