The adjusting entry to record an accrued revenue is:
A) Increase an expense; decrease an asset.
B) Decrease a liability; increase revenue.
C) Increase an expense; increase a liability.
D) Increase an expense; decrease a liability.
E) Increase an asset; increase revenue.

Question

Quizplus · Accepted Answer

Accrued revenue is revenue that has been earned but not yet received in cash or recorded. The adjusting entry for accrued revenue involves increasing an asset (accounts receivable) and increasing revenue.

The Adjusting Entry to Record an Accrued Revenue Is