An adjusting entry that debits Accounts Receivable is an example of a(n):
A)prepaid expense.
B)accrued revenue.
C)accrued expense.
D)unearned revenue.

Question

Quizplus · Accepted Answer

An adjusting entry that debits Accounts Receivable is an example of accrued revenue. This is because the revenue has been earned but not yet received, so it is accrued and recorded as an asset in the form of accounts receivable.

An Adjusting Entry That Debits Accounts Receivable Is an Example