An example of an account that could be included in an accrual adjustment for revenue is:
A)Rent Receivable.
B)Interest Payable.
C)Deferred Revenue.
D)Cash.

Question

Quizplus · Accepted Answer

An accrual adjustment is needed when a company has earned revenue in the current period but has not yet received the related cash.Cash will not be received until a later period.As a result,the asset involved usually has the word "Receivable" in the account name.If Rent Revenue is earned this month but not received in cash until a later month,an accrual adjustment is needed at the end of the current month to record increases in the company's Rent Revenue and Rent Receivable accounts.

An Example of an Account That Could Be Included in an Accrual