Accrued revenues definition including break down of areas in the definition. Analyzing the definition of key term often provides more insight about concepts. The term accrued revenues can be defined as: Revenues earned in a period that are both unrecorded and not yet received in cash (or other assets); adjusting entries for recording accrued revenues involve increasing assets and increasing revenues. Accrued revenue is something that will have to be adjusted during the adjusting process. Accrued revenue includes revenue earned but not yet recorded as of the cutoff date, meaning work had been done but the invoice or related entry had not yet been creating, a situation that could be a result of the need to compile information, like time, after the work was done but before the invoice is sent out, result being that the invoice did to out but it went out after the cutoff date and we need to pull that accrued revenue back into the period in which it was earned. The entry would generally be a debit to AR and a credit to cash, the adjusting entry for accrued revenue being similar as that for a normal sales or invoice. Accrued revenue is a type of adjusting entry that may need to be revered.
