Recording revenue that is earned, but not yet collected, 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 that has been earned but not yet collected is an example of an accrued receivable transaction. Accrued receivables are amounts that a company has earned but not yet collected in cash. These accruals are recorded as assets on the balance sheet and are typically classified as accounts receivable.

Recording Revenue That Is Earned, but Not Yet Collected, Is