Accrued Revenue
   

Like expenses, revenues are not necessarily earned in the period in which the related cash is received. The entity can earn revenues prior to, in the same period as, or after the period in which the cash is received. If revenue is earned in the same period, as with a sale of goods for cash, the entry is simply a debit to Cash and a credit to Sales Revenue. The other two possibilities require use of the accrual principle.