AG_CPA wrote: Am little confused with Accounting Entry that Becker F2 (page 5)suggests for accounting accrued revenue. Dr. Accounts Receivable Cr. Accrued Revenue To me it appears both the above accounts are B/S accounts. The General rule states accrual impacts income statement. From the above, it doesn't look like that. My understanding of accrued revenue entry is: Dr. Accrued Revenue (B/S Asset) Cr. Revenue (I/S Income) Can someone please clarify? rgds

I am not familiar with Becker, but it appears that the "accrued revenue" account is meant to represent an income statement account in this example.  I agree, however, that it looks unusual to label it "accrued revenue" as opposed to just "revenue."

bryris wrote: IMHO, you'd never see "Accrued Revenue" on a balance sheet. Its either revenue or its not. From a BS perspective, that would be either cash, receivable, or whatever. A/R    Accrued Revenue This is what it would be in my opinion using that account name.

What do you mean when you say its either revenue or not?

For example interest income not yet received but is earned.

Entry will be

Interest receivable Dr (Increase the asset)

Interest income Cr (increase the revenue account)

And finally when cash is received it will be a complete balance sheet entry.

But the first entry is not only IS its both IS and BS.

Basically its wrong to say that Accrual has only IS impact.

Do i make sense or probably I am just blabbering here.