Accrued revenues are
A)received and recorded as liabilities before they are earned.
B)earned and recorded as liabilities before they are received.
C)revenues that have not yet been received but have been earned and have been recorded for the first time by an adjusting entry.
D)earned and already received and recorded.

Question

Quizplus · Accepted Answer

Accrued revenues are revenues that a company has earned by providing goods or services but has not yet received payment for. These are recorded through adjusting entries to reflect the earned revenue in the accounting period it was earned, even though cash has not yet been received. This aligns with the accrual basis of accounting, where revenues are recognized when earned, not necessarily when cash is received.

Accrued Revenues Are