Accrued revenues:

a. At the end of one accounting period result in cash receipts in a future period.

b. At the end of one accounting period often result in cash payments in the next period.

c. Are also called unearned revenues.

d. Are listed on the balance sheet as liabilities.

e. Are recorded at the end of an accounting period because cash has already been received for revenues earned.

Question

Litzy Bird

Business

14 October, 23:56

Accrued revenues:

a. At the end of one accounting period result in cash receipts in a future period.

b. At the end of one accounting period often result in cash payments in the next period.

c. Are also called unearned revenues.

d. Are listed on the balance sheet as liabilities.

e. Are recorded at the end of an accounting period because cash has already been received for revenues earned.

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Answers (1)

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Callahan · Answer 1

A. At the end of one accounting period result in cash receipts in a future period

Explanation:

Revenue is total amount of money firm receives or is entitled to receive, by selling its goods / services, in a period of time.

Revenue can be:

Cash (Actually received) : Based on cash transactions. Accrued (Earned but not received) : Based on credit transactions - with Debtors (who owe money to us)

Accrued Revenue i. e Revenue Earned but not received in an accounting period : is an asset in form of debtors of a firm. The firm will get cash receipts from them in a future period.