Accrued revenue is revenue that:
A) has been collected and earned.
B) the business has collected, but not yet earned.
C) the business has earned, but not collected.
D) will be collected and earned in the future.

Question

Quizplus · Accepted Answer

Accrued revenue is revenue that has been earned, but not yet collected. Option A states that the revenue has been both collected and earned, which does not match the definition of accrued revenue. Option B states that the revenue has been collected but not earned, which is not possible as revenue can only be recognized once it has been earned. Option D describes revenue that will be earned in the future, which is not yet accrued revenue.

Accrued Revenue Is Revenue That