Accrued revenue refers to income that has been earned by providing goods or services but has not yet been received in cash or recorded in the accounts. It is recognized in the accounting period in which it is earned, regardless of when the payment is received, adhering to the accrual basis of accounting. This ensures that financial statements accurately reflect the company’s financial position. Accrued revenue is recorded as an asset on the balance sheet, as it represents a future economic benefit to the company once the cash is collected.