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

Question

Quizplus · Accepted Answer

Accrued revenue refers to the revenue that a business has earned but not yet collected in cash. This revenue has been recognized as earned even though the payment has not yet been received, and will be entered as an asset on the balance sheet until it is collected. A is incorrect because if revenue has been collected and earned, it is not classified as accrued revenue. B is incorrect because if the business has collected revenue in cash, it is recognized as revenue earned and not accrued revenue. D is incorrect because if revenue will be collected and earned in the future, it is not yet recognized as accrued revenue.

Accrued Revenue Is Revenue That ________