Asked by Steven Andekian on Jul 12, 2024
Verified
Accrued revenues would affect _______ on the balance sheet.
A) assets
B) liabilities
C) owner's capital
D) prepaid expenses
Owner's Capital
The amount of equity a proprietor has in the business, representing the difference between the business's assets and liabilities.
Prepaid Expenses
Expenses paid in advance for goods or services to be received in the future.
- Master the methodology and impact of adjusting entries in the accounting cycle.
- Examine how adjusting entries influence the accounting outcomes depicted in the income statement and balance sheet.
Verified Answer
PB
Passionn Brown
Jul 16, 2024
Final Answer :
A
Explanation :
Accrued revenues are revenues that have been earned but not yet received, so they increase the company's assets (specifically accounts receivable) on the balance sheet.
Learning Objectives
- Master the methodology and impact of adjusting entries in the accounting cycle.
- Examine how adjusting entries influence the accounting outcomes depicted in the income statement and balance sheet.