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
Event studies are one of the most powerful and widely used applications of the capital asset pricing model (CAPM). An event study is an attempt to determine whether a particular ev

Keys Printing plans to issue a $1,000 par value, 10-year noncallable bond with a 5.00% coupon, paid semiannually. It should sell at par. The company''''s marginal tax rate is 40.00

Factors of Importance of returns in any investment Importance of returns in any investment decision can be traced to the following factors: It enables investors to

Q. Credit Standards for Formulation of Optimum Credit Policy? Credit Standards: - Credit standards are the essential criteria set for extension of credit to customers. Decision

What does an investment banker do when underwriting a new security issue for a corporation? While underwriting a new security issue an investment banker buys it and after that re

Calculate the present value and determine the npv, Financial Management. Assume today is 3 December 2009. Helen is 30 years old and has a Bachelor of Business. She is currently em

Cash flow matching strategy is used to build a bond portfolio wherein the cash flows of the bond portfolio exactly match a stream of liabilities. The most s

What are the Predator shareholders Predator company's shareholders mayn't approve the bid for various reasons. Reduction in EPS If consideration is

I am facing some problems in my assignment of Cash Management and Inventory Management. Can anybody suggest me the proper explanation for it?

I am trying to solve this formula: 2/10, net 30. In the book I am reading they have 2% x 360 ------- ------ = 2.04% x 18=36.72% 100-2% (30-10) I want to know how the