Which of the following is an example of an accrued revenue
Answer (1)
It seems like the answer options are missing from your query. An example of accrued revenue is a service provided to a client but not yet billed or paid for; essentially, revenue earned but not yet collected. Key points about accrued revenue:Definition:Under accrual accounting, revenue is recognized when it is earned, regardless of when payment is received. Example scenarios:A company provides consulting services in December but doesn't bill the client until January. The revenue is accrued in December. A software company sells a yearly subscription and recognizes the revenue evenly over the course of the year. Interest earned on a loan or deposit is accrued until it is paid out. Accounting treatment:Accrued revenue is recorded as an asset on the balance sheet until it is collected. For the most accurate answers to multiple-choice questions, try including the answer options in your search.
