Zeratul wrote: The whole point of accruing is to recognize revenues/expenses before the cash is received/paid. Outside of textbook examples you don't see names like "Accrued revenue" or "accrued interest revenue/income", it's usually just called "(something) revenue." Textbooks do this so you can realize you're accruing. The whole point is that earning/incurring is the important event from an accrual point of view. All accrual entries will consist of a B/S account and a revenue/expense account, which flows through the I/S. There would be no point in accruing otherwise. The B/S account is basically there to absorb the cash entry.

Thanls Zeratul. This makes complete sense.