Accrued revenues are revenues that have been earned but have not yet been received or recorded. They are recorded through adjusting entries, increasing both the revenue and accounts receivable accounts. Option A and B are incorrect as accrued revenues are not recorded as liabilities. Option D is incorrect as accrued revenues have been earned but not necessarily already received.

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Accrued Revenues Are

Question 97

Multiple Choice

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 until .

Correct Answer: