Net income for a period will be understated if accrued revenues are not recorded at the end of the accounting period.

Name: Net income for a period will be understated if accrued revenues are not recorded at the end of the accounting period.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accrued revenues are revenues earned but not yet received or recorded, and if they are not recorded at the end of the accounting period, net income will be understated because the revenues earned were not included in the accounts for that period.

Net Income for a Period Will Be Understated If Accrued