Which of the following cases would require an adjusting entry to accrue revenue?
A)a client has paid for services in advance
B)customers have been billed for services but not yet paid
C)capital stock has been issued for cash but not yet paid for
D)interest on a note receivable will not be received until the note is paid off next year

Question

Quizplus · Accepted Answer

An adjusting entry is needed to accrue revenue when revenue has been earned but not yet received or recorded. In option D, interest has been earned but not yet received, requiring an adjusting entry to recognize the revenue.

Which of the Following Cases Would Require an Adjusting Entry