Accrued Revenue
 |
Definition of 'Accrued Revenue'An asset class for goods or services that have been sold or completed but that have not yet been billed and/or paid for. Accrued revenue is income that has been incurred but not received, such as monthly rent that is due in arrears, or following the monthly rental period. The income has been earned (since an individual or firm rented the item) but the revenue has not been received (as per the rental agreement to pay in arrears). |
 |
Investopedia explains 'Accrued Revenue'Accrued revenue is treated as an asset on the balance sheet rather than a liability. This reporting is important to the valuation of a company, particular in the service industry, where billing typically occurs after the work or service is complete. Without this asset class on financial reports, the company could appear to have much lower revenues, and may not have a fair method to balance expenses associated with the accrued revenue. |
Related Definitions
Articles Of Interest
-
The Essentials Of Corporate Cash Flow
Tune out the accounting noise and see whether a company is generating the stuff it needs to sustain itself. -
Getting To Know Business Models
Learning how to assess business models helps investors identify companies that are the best investments. -
The Ins and Outs Of In-Process R&D Expenses
Are these charge-offs fair accounting or earnings manipulation? Learn more here. -
Advanced Financial Statement Analysis
Learn what it means to do your homework on a company's performance and reporting practices before investing. -
If You Don't Mind Volatility, Deere Could Still Do Alright
Though Deere's shares sold off after earnings, the business model is sound and rolling along. -
Agilent Isn't Making It Easy On Investors
Core operating performance at Agilent needs to improve -
Consumer Spending As A Market Indicator
What people buy and where they shop can provide valuable information about the economy. -
Depreciation: Straight-Line Vs. Double-Declining Methods
Appreciate the different methods used to describe how book value is "used up". -
Overheated Expectations Send Rackspace Investors To The Torture Chamber
Absent a real competitive moat, it's hard to make sense of Rackspace's valuation. -
Mondelez Isn't As Good As Nestle, But Priced Like It Is
Investors seem to bullish on Mondelez, given the relative performance at Kellogg and Nestle.
Free Annual Reports
