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

Question

Quizplus · Accepted Answer

Recording revenue earned, but not yet collected, from a customer is an example of an accrued receivable transaction. This means that the business has already provided the goods or services to the customer, but the payment is not yet received. It is different from unearned revenue, which is when a customer has paid in advance for goods or services that have not yet been provided.

Recording Revenue Earned, but Not Yet Collected, from a Customer