Explore commonly used personal finance terms.
Accrued revenue is income that has been earned by a business for providing goods or services but has not yet been received in cash. This type of revenue is recorded in the financial statements under accounts receivable, following the accrual accounting principle. It reflects the company’s right to payment and is included in revenue, ensuring the financial reports accurately depict the company’s financial position. Accrued revenue is common in industries with long billing cycles, like construction or consulting, providing a complete view of income.
