Which of the following transactions constitutes an accrual adjustment involving a revenue account?
A)Revenue earned,but not yet collected,on investments.
B)Cash collected in advance of the revenue being earned.
C)Wages incurred,but not yet paid to employees,at the end of the accounting period.
D)Interest owed,but not yet paid,on a note payable.

Question

Quizplus · Accepted Answer

Interest on investments is earned daily but typically is received in cash on a yearly basis,so each month an accrual adjustment is made to increase Interest Receivable and Interest Revenue for amounts earned but not yet recorded.

Which of the Following Transactions Constitutes an Accrual Adjustment Involving