Accrued income, Financial Management

Income that is received in a fund or by company by providing a service or selling a product, but still has to be received. Mutual funds or other pooled assets that build up income over a period of time but only reimburse it out to shareholders once a year are, by meaning, accruing their income. Individual corporations can also accrue income without really getting it, which is the base of the accrual accounting system.

For instance, suppose that a company is projected to complete services for another corporation once per month for six successive months, but that in the terms of the contract, it will not be given monetary payment for these services until the finish of the six-month period. The company doing the services can accrue a percentage of the income gained after every month, even though physical payment will not occur until after the six-month period.

Posted Date: 7/27/2012 8:00:55 AM | Location : United States







Related Discussions:- Accrued income, Assignment Help, Ask Question on Accrued income, Get Answer, Expert's Help, Accrued income Discussions

Write discussion on Accrued income
Your posts are moderated
Related Questions
Sarkozy Ltd is considering the selection of one of a pair of mutually exclusive investment projects. Both would involve purchase of machinery with a life of five years. Projec

Define operating cycle and long and short operating cycle? Use of operating cycle? Can someone give me assistance on these questions??

Your family purchased a house three years ago. When you bought the house you financed it with a $160,000 mortgage with an 8.5% nominal interest rate (compounded monthly). The mortg

Types of Bonds 1. Secured Versus Unsecured Bonds 2.  Senior versus Subordinate Bonds 3.  Registered and Unregistered Bo


What do you meant by common stocks in the financial term? Common Stocks: Common stocks illustrate ownership interests into the firm. Common stockholders obtain dividends (wh

The requirement of this assignment that you write a Market Outlook for Bond Markets in a report form, in which you present your assessment of  the investment potential of global so

Objectives and Functions of ASIC The objective of ASIC is to ensure the confident and informed participation of consumers in the financial system. To attain this objective, it

Info on applying CVP to product mix limiting factors

What can a financial institution often do for a surplus economic unit that it would have difficulty doing for itself if the surplus economic unit (SEU) were to deal directly with a