Accrued revenue
In one sentenceRevenue the business earned by providing services or goods in the period but has not yet invoiced or collected; it is recorded as an asset.
Simply put
You provided the service and the month ended, but the invoice or collection falls in the next month. On the accrual basis the revenue is recorded in the month in which it was earned.
It is recorded with an adjusting entry at the end of the period: debit accrued revenue (an asset) and credit revenue.
Worked example
A business rents out a warehouse for 8,000 SAR a month, and December's rent is collected in January.
Dr: Accrued revenue (debit)8,000
Cr: Rental income (credit)8,000
December revenue recorded although not collected8,000 SAR
Don't confuse it with
Deferred revenueAn amount received before the service is provided, so it is a liability.