A revenue-asset relationship exists with:

Question

Quizplus · Accepted Answer

The revenue-asset relationship exists with accrued revenue adjustments, as they represent revenue that has been earned but not yet received. This creates an asset on the balance sheet, known as accounts receivable, until the payment is received. Prepaid expense adjustments and unearned revenue adjustments create liabilities on the balance sheet, while accrued expense adjustments represent expenses that have been incurred but not yet paid and do not directly relate to revenue.

A Revenue-Asset Relationship Exists With