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 has been provided and paid on the same day

Question

Quizplus · Accepted Answer

Accrued revenue refers to revenue that has been earned but not yet billed or received payment for. Option B indicates that snow removal services have been provided but not yet billed or paid, making it an example of accrued revenue. Option A refers to deferred revenue or unearned revenue, where payment has been received in advance for services that have not yet been provided. Option C refers to an agreement for future services but nothing has yet been provided. Option D is an example of immediate revenue, where services are provided and paid for on the same day.

Which of the Following Is an Example of Accrued Revenue