Accrued income is income that has been earned during the accounting period but not yet received in cash.

It is recorded to follow the accrual principle, which says income should be recognized when it is earned.

Examples:

Interest earned but not yet received

Commission earned but not yet collected

Rent receivable

Accrued income is shown as a current asset in the balance sheet.

In simple terms, accrued income is money earned by the business but not yet received.