Accrued revenues are
A) earned and recorded as liabilities before they are received.
B) earned but not yet received or recorded.
C) received and recorded as liabilities before they are earned.
D) earned and already received and recorded.

Question

Quizplus · Accepted Answer

Accrued revenues refer to such revenues that have been earned but not yet received or recorded. This means that even though the company has completed the service or delivered the goods, the payment for the same has not been received or recognized as revenue in the accounts. Accrued revenues are recorded as assets in the balance sheet and recognized as revenues in the income statement once they are collected. Option A refers to accrued expenses, option C refers to unearned revenues, and option D refers to recognized revenues.

Accrued Revenues Are