Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Revenues

Financial Accounting

3. Accrual Accounting Concepts

Adjusting Entries: Accrued Revenues

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

Which of the following accounts would likely be included in an accrual adjusting entry for accrued revenues?

Accounts Receivable

Prepaid Rent

Unearned Revenue

Cash

Previous problemNext problem

Verified step by step guidance

Understand the concept of accrued revenues: Accrued revenues are revenues earned but not yet received in cash or recorded. These are typically recognized in the accounting period in which they are earned, regardless of when the cash is received.

Identify the accounts involved in accrued revenues: Accrued revenues typically involve an asset account (such as Accounts Receivable) and a revenue account. Accounts Receivable represents the amount owed by customers for services or goods provided but not yet paid for.

Analyze the given options: Prepaid Rent is an asset account related to expenses paid in advance, Unearned Revenue is a liability account representing cash received before revenue is earned, and Cash is an asset account representing liquid funds. None of these are directly related to accrued revenues.

Determine the correct account: Accounts Receivable is the account that would likely be included in an accrual adjusting entry for accrued revenues because it represents the revenue earned but not yet received in cash.

Conclude the reasoning: The adjusting entry for accrued revenues typically involves debiting Accounts Receivable to record the asset and crediting a revenue account to recognize the earned revenue.