what is the difference between accrued income and deferred income

2 ANSWERS

1. Guest10990050
   

   Deferred Income:-It is income received during an accounting period, but for which the company has not yet supplied the goods and services as at the end of the period, so which cannot be recognized as income. These amounts should not be included in the P & L for the period. Accrued Income :- It is income that is earned but not yet recorded in the accounts.

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2. Arslan Masaud
   

   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 Deferred income is the converse of accruals. It is income received during an accounting period, but for which the company has not yet supplied the goods and services as at the end of the period, so which cannot be recognised as income. These amounts should not be included in the P & L for the period.

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