To accrue revenue means that the cash receipt is recorded before the revenue is earned.

Question

Quizplus · Accepted Answer

Accrual accounting requires that revenue is only recorded when it is earned, meaning when goods or services have been delivered or completed. Recording cash receipts before the revenue is earned would violate this principle and result in inaccurate financial statements. This method of accounting is called cash basis accounting.

To Accrue Revenue Means That the Cash Receipt Is Recorded