Which of the following accounts would be used under the accrual method of accounting,but NOT under the cash-basis method of accounting.
A) Cash
B) Unearned revenue
C) Equipment
D) Salary expense

Question

Quizplus · Accepted Answer

Under the accrual method of accounting, unearned revenue is recognized when cash is received before a service is performed or goods are delivered, reflecting a liability to perform services or deliver goods in the future. This concept does not exist under the cash-basis method, where income is not recognized until cash is actually received, regardless of when services or goods are provided.

Which of the Following Accounts Would Be Used Under the Accrual