Why income accrued income is current asset?

Accrued income is classified as a current asset because it represents income that has been earned but not yet received in cash. This asset is expected to be converted into cash within a year, aligning with the definition of current assets. It reflects amounts due from customers or clients for services rendered or goods delivered, which will provide liquidity in the near term. Therefore, accrued income contributes to the overall working capital of a business.