The adjusting entry for an accrued revenue has the effects of increasing assets and increasing net income.

Question

Quizplus · Accepted Answer

An accrued revenue adjusting entry recognizes revenue that has been earned but not yet received or recorded. This type of adjusting entry increases both assets (such as accounts receivable) and net income, as revenue is recognized and recorded in the income statement. Therefore, the given statement is true.

The Adjusting Entry for an Accrued Revenue Has the Effects