It is divided into advance income and accrued income.
Definition of Revenue Provided
Revenues collected in the current financial period but are related to a future financial period.
Consequently, the financial period is charged with more than the profits due, which results in the realization of gains that do not belong to it. The presented revenues are shown on the liabilities side of the balance sheet, as they are an obligation on the entity that is carried forward to the next year.
Definition of accrued revenue
These are the revenues that pertain to the current financial period but were not collected until the end of the financial period.
Consequently, the financial period is charged with less than the revenues due, and accordingly achieving profits less than the actual.
