An accrued revenue can best be described as an amount
A) collected and currently matched with expenses.
B) collected and not currently matched with expenses.
C) not collected and currently matched with expenses.
D) not collected and not currently matched with expenses.

Question

Quizplus · Accepted Answer

An accrued revenue is revenue that has been earned by a company but has not yet been received in cash. It is considered as an asset on the balance sheet and is matched with the expenses incurred to earn that revenue. Therefore, it is not collected but currently matched with expenses. Choice A is incorrect because if the amount has already been collected, it would not be an accrued revenue. Choice B is incorrect because if the revenue is not currently matched with expenses, it would be considered an unearned or deferred revenue. Choice D is incorrect because if the revenue is not accrued, it would not be an asset on the balance sheet.

An Accrued Revenue Can Best Be Described as an Amount