PRC-1 · Chapter 4 · Question 13 of 100
Income that has been rightfully earned during the accounting period but has not yet been received in cash by year-end is formally classified in the statement of financial position as a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Current asset
Explanation
Earned but not yet received income is treated as an accrued income (or receivable), which is classified as a current asset in the statement of financial position.
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