Multiple Choice Accrual-basis revenues exceed cash collections from customers. Accrual-basis net income exceeds cash-basis net income. Accrual-basis revenues are less

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12 February, 09:57

Multiple Choice Accrual-basis revenues exceed cash collections from customers. Accrual-basis net income exceeds cash-basis net income. Accrual-basis revenues are less

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Rylee Allen · Answer 1

Accrual-basis revenues exceed cash collections from customers.

Explanation:

Cash collected in advance from the customer against future sales is called unearned revenue. When unearned revenue decrease in the year it mean the business received less amount as the sales accrued on the basis of accrual concept during the period. Closing balance of the unearned revenue will be lower than the opening balance.