Adjustments for accrued revenues:
A)increase assets and increase revenues.
B)increase assets and increase liabilities.
C)decrease assets and increase revenues.
D)decrease liabilities and increase revenues.

Question

Quizplus · Accepted Answer

Accrued revenues are revenues that have been earned but not yet received in cash or recorded. Adjusting for accrued revenues involves recognizing the revenue earned, which increases revenues, and recording a receivable, which increases assets.

Adjustments for Accrued Revenues