Accrued revenues:
A) At the end of one accounting period result in cash receipts in a future period.
B) Are listed on the balance sheet as liabilities.
C) At the end of one accounting period often result in cash payments in the next period.
D) Are recorded at the end of an accounting period because cash has already been received for revenues earned.
E) Are also called unearned revenues.

Question

Quizplus · Accepted Answer

Accrued revenues are revenues that have been earned but not yet received in cash. They are recorded at the end of one accounting period but result in cash receipts in a future period, hence option A is the correct choice. Option B is incorrect as accrued revenues are not listed on the balance sheet as liabilities. Option C is also incorrect as accrued revenues do not result in cash payments in the next period. Option D is referring to cash basis accounting, where revenue is only recognized when received in cash, not accrued revenues. Option E is incorrect as unearned revenues refer to cash received in advance for goods or services not yet provided.

Accrued Revenues