Accrued Income

Income that is earned in a fund or by company by providing a service or selling a product, but has yet to be received. Mutual funds or other pooled assets that accumulate income over a period of time but only pay it out to shareholders once a year are, by definition, accruing their income. Individual companies can also accrue income without actually receiving it, which is the basis of the accrual accounting system.

For example, assume that a company is expected to complete services for another company once per month for six consecutive months, but that under the terms of the contract, it will not receive monetary payment for these services until the end of the six-month period. The company performing the services can accrue a percentage of the income earned after each month, even though physical payment will not take place until after the six-month period.


Investment dictionary. . 2012.

Look at other dictionaries:

  • accrued income — ➔ income * * * accrued income UK US noun [U] ACCOUNTING ► the amount of money that a business earns in a particular period which it records in its accounts but that it does not receive in that period: »The grant will normally be reduced by the… …   Financial and business terms

  • accrued income — income earned but not yet received nor past due. Also called accrued revenue. [1980 85] * * * accrued income, income earned but not yet received …   Useful english dictionary

  • accrued income — accrued revenue Income that has been earned during an accounting period but not received by the end of it. Accrued income is dealt with as set out in the accruals concept outlined in Statement of Standard Accounting Practice 2. For example,… …   Accounting dictionary

  • accrued income — income earned but not yet received nor past due. Also called accrued revenue. [1980 85] * * * …   Universalium

  • accrued income — Fin income that has been earned but not yet received …   The ultimate business dictionary

  • accrued income scheme — A scheme which charges to tax that proportion of the sale price of securities within its scope (debt securities), which is equivalent to the income that has accrued on the security since the last income payment date (sections 710 and 728, Income… …   Law dictionary

  • accrued income scheme — An arrangement that applies in the UK when the owner of interest bearing securities disposes of them. The interest accrued between the date of the last interest payment and the date of disposal is regarded, for tax purposes, as the income of the… …   Big dictionary of business and management

  • accrued — adjective accumulated, added to, annexed, grew, increased, mounted, multiplied associated concepts: accrued debts, accrued depreciation, accrued dividends accrued income, accrued installments, accrued interest, accrued rent, accrued rights,… …   Law dictionary

  • income tax — a tax levied on incomes, esp. an annual government tax on personal incomes. [1790 1800] * * * Levy imposed by public authority on the incomes of persons or corporations within its jurisdiction. In nations with an advanced system of private… …   Universalium

  • income — The return in money from one s business, labor, or capital invested; gains, profits, salary, wages, etc. The gain derived from capital, from labor or effort, or both combined, including profit or gain through sale or conversion of capital. Income …   Black's law dictionary


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.