Which of the following statements is correct?
A)Income that has been earned but not yet received is called accrued income.
B)Under the accrual basis of accounting, revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received.
C)Unearned Subscription Income is a liability account.
D)All of these statements are correct.

Question

Quizplus · Accepted Answer

- Statement A is correct as accrued income is income that has been earned but not yet received.
- Statement B is correct as under the accrual basis of accounting, revenue is recognized and recorded in the period when it is earned regardless of when cash related to the transaction is received. 
- Statement C is correct as Unearned Subscription Income is a liability account. Therefore, all statements are correct.

Which of the Following Statements Is Correct