Which of the following is an example of accrued revenue?
A) snow removal services that have been paid for three months in advance
B) snow removal services that have been provided but have not been billed or paid
C) an agreement that has been signed for snow removal services for the next three months
D) snow removal services that have been provided and paid on the same day

Question

Quizplus · Accepted Answer

Accrued revenue refers to the revenue that has been earned but has not been received or billed yet. In this case, snow removal services have been provided but have not been billed or paid, so it can be classified as accrued revenue. The other options do not fit this definition. A is an example of deferred revenue, C is an example of a future agreement, and D is an example of cash revenue.

Which of the Following Is an Example of Accrued Revenue