Is accrued revenue an asset or a liability? Accrued revenue is recognised as an asset on the balance sheet because it represents revenue that has been earned but not yet received. Since the company has provided goods or services associated with the revenue, its obligation has been met, which ...
Is Accrued Revenue an Asset? Yes, accrued revenue is recorded as an asset on a company’s balance sheet. Specifically, it is classified as a current asset because it represents the amount of revenue that the company has earned but has not yet received in cash. Current assets are assets tha...
Accrued revenue is recorded as anasseton the balance sheet because it represents a claim to future cash inflows. The corresponding credit increases therevenueaccount on the income statement. For example, if a company earns $5,000 in consulting fees in December but receives payment in January, it...
Explain the need for accruals and other adjustments in preparing financial statements.The statement about accrued expenses is correct; a valuation adjustment for an asset converts its historical cost to current market value; accrued revenue arises when revenue has been earned but not yet received....
Accounts Receivable is a(n) [{Blank}] account and has a normal [{Blank}] balance. A. asset; credit B. liability; credit C. liability; debit D. asset; debit Classify the Unearned Revenue account as a revenue, an expense, an asset, a liability, or an equity...
The other company involved in a prepayment situation would record their advance cash outlay as aprepaid expenseor an asset account on their balance sheet. The other company recognizes its prepaid amount as an expense over time at the same rate as the first company recognizes earned revenue. ...
while a credit balance has negative value. For example, a building account with a credit balance is impossible because it implies that the business somehow has negative buildings, which is a nonsensical implication. Unearned revenue is not a contra asset because the business has no ownership clai...
A.Decrease a liability; increase revenue.B.Increase an expense; increase a liability.C.Increase an expense; decrease a liability.D.Increase an asset; increase revenue.E.Increase an expense; decrease an asset.相关知识点: 试题来源: 解析 B 反馈...
The accrual of revenues or a revenue accrual refers to the reporting of revenue and the related asset in the period in which they are earned, and which is prior to processing a sales invoice or receiving the money. An example of the accrual of revenues is a bond investment’s interest tha...
The deferred expense is recorded as an asset on the company's balance sheet (e.g.,prepaid rent). The prepaid expense is classified as an asset. That account is debited, while the cash account is credited for the same amount. Once incurred, the expense is recognized on the income statement...