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 pairs of accounts could NOT appear together in the same adjusting entry for accrued revenues?

Rent Receivable and Rent Revenue

Interest Receivable and Interest Revenue

Cash and Service Revenue

Accounts Receivable and Service Revenue

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. Adjusting entries for accrued revenues typically involve recognizing revenue and recording a receivable.

Analyze the pairs of accounts provided: Rent Receivable and Rent Revenue, Interest Receivable and Interest Revenue, Cash and Service Revenue, Accounts Receivable and Service Revenue.

Identify the nature of each account: Receivable accounts (e.g., Rent Receivable, Interest Receivable, Accounts Receivable) represent amounts owed to the company, while revenue accounts (e.g., Rent Revenue, Interest Revenue, Service Revenue) represent income earned.

Determine why 'Cash and Service Revenue' could NOT appear together in the same adjusting entry: Adjusting entries for accrued revenues do not involve cash because cash has not yet been received. Instead, they involve receivable accounts to record the amount owed.

Conclude that the other pairs (Rent Receivable and Rent Revenue, Interest Receivable and Interest Revenue, Accounts Receivable and Service Revenue) are valid for adjusting entries because they correctly reflect the accrual of revenue and the recognition of receivables.