Which of the following is an example of an accrual of unrecorded revenues?
A)Interest accrues each month,but is paid quarterly.
B)Office supplies are purchased each month,but the account is not adjusted until the end of the month.
C)Wages have been earned,but have not been paid at the end of the month.
D)An attorney has performed work for a client,but has not billed the client yet.
E)Equipment purchased will be beneficial for several years.

Question

Quizplus · Accepted Answer

An accrual of unrecorded revenue occurs when a company has earned revenue but has not yet received payment or recorded it. Option D describes a situation where an attorney has performed work for a client but has not yet billed the client. The revenue has been earned but has not yet been recorded, making it an example of an accrual of unrecorded revenue. The other options describe accrual of expenses or assets, not revenue.

Which of the Following Is an Example of an Accrual