Which of the following accounts would be used under the accrual basis of accounting, but not under the cash-basis of accounting?

Question

Quizplus · Accepted Answer

Under the accrual basis of accounting, unearned revenue is recognized when cash is received before a service is performed or goods are delivered, reflecting a liability to perform services or deliver goods in the future. This concept does not exist under the cash-basis of accounting, where income is recorded only when cash is received, and expenses are recorded only when cash is paid.

Which of the Following Accounts Would Be Used Under the Accrual