Which of the following statements is correct?
A) Income that has been earned but not yet received is called accrued income.
B) Unearned Subscription Income is a liability account.
C) 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.
D) All of these statements are correct.

Question

Quizplus · Accepted Answer

A) Accrued income refers to income that has been earned but not yet received.
B) Unearned Subscription Income is a liability account because it represents revenue that has not yet been earned.
C) 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. This is because revenue is considered earned when goods or services are provided, not when cash is received.

Therefore, all three statements are correct.

Which of the Following Statements Is Correct