Can you think of other transactions or scenarios that feature accrued income?
Suggested answers to practice activity 6.4
Examples of transactions that feature accrued income are:
i. Rental income is due to be received by 31 July 2018, and it is received on 12 March 2019. The statement of profit or loss is prepared to 30 September every year. In this example, rental income is an accrued income in the financial statements because it is due for receipt as of 31 July 2018. Yet, it remains un-receipted as of 30 September 2018.
ii. Dividend income is expected to be received on 30 June 2017, and it is received on 31 August 2017. The financial statements are prepared to 30 June every year. In this example, dividend income is an accrued income in the financial statements because it is due for receipt as of 30 June 2017. Yet, it has not been received as of the same date.
On your own, think of more examples of accrued income.
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