If a company earns interest in June but does not receive it until December, this is referred to as an accrued revenue on June 30.

Name: If a company earns interest in June but does not receive it until December, this is referred to as an accrued revenue on June 30.
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Accrued revenue is recognized when it is earned, even if the cash has not yet been received. In this case, the interest earned in June is recognized as accrued revenue on June 30.

If a Company Earns Interest in June but Does Not