Asked by Elizabeth Steinke on Jun 26, 2024
Verified
Accrued revenues:
A) At the end of one accounting period result in cash receipts in a future period.
B) At the end of one accounting period often result in cash payments in the next period.
C) Are also called unearned revenues.
D) Are listed on the balance sheet as liabilities.
E) Are recorded at the end of an accounting period because cash has already been received for revenues earned.
Accrued Revenues
Revenues that have been earned through goods or services delivered, though payment has not yet been received.
Unearned Revenues
Money received by an individual or company for a service or product that has yet to be provided or delivered.
Accounting Period
A specific duration of time for which financial activities are reported and analyzed, usually a year or a quarter.
- Comprehend the role of accrued revenues and how they affect financial statements.
Verified Answer
SW
simran waliaJun 29, 2024
Final Answer :
A
Explanation :
Accrued revenues are amounts earned but not yet received in cash or recorded at the end of the accounting period. They result in cash receipts in a future period, not in the period the revenue was earned.
Learning Objectives
- Comprehend the role of accrued revenues and how they affect financial statements.