Recording revenue that is earned,but not yet collected,is an example of:
A)A prepaid expense transaction.
B)A deferred revenue transaction.
C)An accrued liability transaction.
D)An accrued receivable transaction.

Question

Quizplus · Accepted Answer

Recording revenue that has been earned but not yet collected is an accrued receivable transaction. This is because the revenue is recognized as earned when the product or service has been provided, even though payment has not been received yet. This creates a receivable on the balance sheet, which represents the amount of money that the company is owed by its customers.

Recording Revenue That Is Earned,but Not Yet Collected,is an Example