Which account type does "Accrued Income" primarily represent?

Accrued Income primarily represents an Asset because it reflects money that a business is entitled to receive for services or goods provided but has not yet been received in cash. In accounting terms, it is classified as an asset because it indicates a future economic benefit; the business expects to collect this income in the future, thereby increasing its resources.

When a company earns income but has not received payment, it records this amount as accrued income, typically as a current asset on its balance sheet. This ensures that the financial statements accurately reflect income earned during a specific period, even though cash has not yet exchanged hands. This aligns with the accrual basis of accounting, which recognizes income when earned rather than when cash is received.

In contrast, revenue is recorded when it is earned, expenses relate to the costs incurred to generate revenue, and liabilities represent obligations to pay money or deliver goods/services in the future. Thus, the nature of accrued income aligns neatly with the definition of an asset.