What is the difference between accrued revenue and accrued expenses?

Both the accounting concepts of accumulated revenue and accrued expenses entail recognizing transactions that have already occurred but have not yet been settled in cash. Income that has been earned but has not yet been received is referred to as accrued revenue. When a business offers a consumer products or services but hasn’t yet been paid, this happens. Contrarily, accrued expenses are costs that have been incurred but not yet been paid. When a business obtains goods or services from a supplier but hasn’t yet made the payment, this occurs. Even if there haven’t been any cash transactions yet, both ideas make sure that financial statements appropriately reflect a company’s financial status.

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