Which of the following accounts would be used under the accrual basis of accounting,but not under cash basis accounting?
A) Cash
B) Unearned Revenue
C) Service Revenue
D) Salaries Expense

Question

Quizplus · Accepted Answer

The unearned revenue account represents revenue that has been received in advance but has not yet been earned. This type of account is recognized under accrual accounting because revenue is recognized when earned, regardless of when payment is received. Under cash accounting, the revenue would only be recognized when payment is received. Therefore, unearned revenue would be used under accrual accounting but not under cash accounting.

Which of the Following Accounts Would Be Used Under the Accrual