The adjusting entry to record an accrued revenue is:
A) Increase an expense; increase a liability.
B) Increase an asset; increase revenue.
C) Decrease a liability; increase revenue.
D) Increase an expense; decrease an asset.
E) Increase an expense; decrease a liability.

Question

Quizplus · Accepted Answer

Accrued revenue is revenue that has been earned but has not yet been received or recorded. To record an accrued revenue, we need to increase an asset (account receivable) and increase the corresponding revenue account. Therefore, option B is the correct answer.

The Adjusting Entry to Record an Accrued Revenue Is