What is accrued income and expense and it’s entries

Question

Accepted Answer

Accrued income and expenses are revenues and expenses that have been earned or incurred, but not yet received or paid.

Accrued income is revenue that has been earned but not yet received. It is recorded as a debit to an asset account and a credit to a revenue account.
Accrued expenses are expenses that have been incurred but not yet paid. They are recorded as a debit to an expense account and a credit to a liability account.
Accrued income and expenses are typically adjusted at the end of an accounting period to reflect the true financial position of a company.
Examples of accrued income include interest income earned but not yet received, and rent income earned but not yet received.
Examples of accrued expenses include salaries owed but not yet paid, and utilities used but not yet paid.

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