Match the following types of adjustments with the appropriate transactions.
-Accrued revenue
A)Used to record wages owed, but not yet paid.
B)Used to record revenue earned for which cash was received in advance.
C)Used to record revenue earned for which cash has not been received.
D)Used to record expiration or use of prepaid insurance.

Question

Quizplus · Accepted Answer

Accrued revenue adjustments are made to record revenue that has been earned during a period but for which the cash has not yet been received. This ensures that the revenue is recognized in the correct accounting period, aligning with the accrual basis of accounting.

Match the Following Types of Adjustments with the Appropriate Transactions