Asked by Songqing Jiang on Jun 24, 2024
Verified
Accrued revenues are
A) received and recorded as liabilities before they are earned.
B) earned and recorded as liabilities before they are received.
C) revenues that have not yet been received but have been earned and have been recorded for the first time by an adjusting entry.
D) earned and already received and recorded.
Accrued Revenues
Revenues earned in one accounting period but not received until a later period.
Adjusting Entry
A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.
- Discriminate between assorted revenue categories and the manner in which they are recorded.
- Attain proficiency in the concept and adjustment of accrued expenses and revenues.
Verified Answer
LV
Lourdy Vincent
Jun 25, 2024
Final Answer :
C
Explanation :
Accrued revenues are revenues that a company has earned by providing goods or services but has not yet received payment for. These are recorded through adjusting entries to reflect the earned revenue in the accounting period it was earned, even though cash has not yet been received. This aligns with the accrual basis of accounting, where revenues are recognized when earned, not necessarily when cash is received.
Learning Objectives
- Discriminate between assorted revenue categories and the manner in which they are recorded.
- Attain proficiency in the concept and adjustment of accrued expenses and revenues.
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