Accrued income and accrued expense under which head it is shown under balance sheet

Question

Accepted Answer

Accrued income is shown under the asset side of the balance sheet, while accrued expenses are shown under the liability side.

Accrued income is recorded as a current asset on the balance sheet, representing revenue that has been earned but not yet received.
Accrued expenses are recorded as a current liability on the balance sheet, representing expenses that have been incurred but not yet paid.
Accrued income increases the total assets of the company, while accrued expenses increase the total liabilities.
Examples of accrued income include interest receivable, rent receivable, and commission receivable.
Examples of accrued expenses include salaries payable, utilities payable, and taxes payable.

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