Accrued Revenue
Barron's Accounting Dictionary:
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Accrued Revenue
Money that has been earned but not received as of the end of the reporting period; also called accrued assets. To accrue means to accumulate. The accrued asset is shown under current assets in the balance sheet. For example, assume a landlord has not received January rent of $500 from a tenant. The adjusting entry at the end of January is to debit rent receivable and credit rental revenue for $500.
| Accrued Expenses, Accrual Accounting, Accretion | |
| Accumulated Benefit Obligation (ABO), Accumulated Depreciation, Accumulated Earnings Tax |
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Accrued Revenue
Investopedia Financial Dictionary:
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Accrued Revenue
An asset class for goods or services that have been sold or completed but that have not yet been billed and/or paid for. Accrued revenue is income that has been incurred but not received, such as monthly rent that is due in arrears, or following the monthly rental period. The income has been earned (since an individual or firm rented the item) but the revenue has not been received (as per the rental agreement to pay in arrears).
Investopedia Says:
Accrued revenue is treated as an asset on the balance sheet rather than a liability. This reporting is important to the valuation of a company, particular in the service industry, where billing typically occurs after the work or service is complete. Without this asset class on financial reports, the company could appear to have much lower revenues, and may not have a fair method to balance expenses associated with the accrued revenue.
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Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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