The adjusting entry to record accrued revenues results in an increase in assets and stockholders' equity.

Name: The adjusting entry to record accrued revenues results in an increase in assets and stockholders' equity.
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Question

Quizplus · Accepted Answer

The adjusting entry to record accrued revenues recognizes revenues that are earned but not yet paid for. The result of this is an increase in assets (accounts receivable) and an increase in revenue; the increase in revenue results in an increase to stockholders' equity.

The Adjusting Entry to Record Accrued Revenues Results in an Increase