Question

Accrued revenues are revenues that a.have been earned and received. b.have not been earned but for which cash has been received. c.have been earned but have not been received or recorded in the books. d.have not been earned or received.

Answer 1

Answer:

Option (c) is correct.

Explanation:

Accrued revenue refers to the revenue that have been earned but the amount of that service revenue cannot be received yet in cash. For example; A plumber is providing a service worth of $50 to a customer and the customer not paying this amount today. Hence, this amount of service revenue is termed as the accrued revenue which indicates that revenue is earned but cash cannot be received.