The Adjusting Entry to Record an Accrued Revenue Is

question 220

Multiple Choice

The adjusting entry to record an accrued revenue is:

• A) Increase an expense; increase a liability.
• B) Increase an asset; increase revenue.
• C) Decrease a liability; increase revenue.
• D) Increase an expense; decrease an asset.
• E) Increase an expense; decrease a liability.

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Definitions:

Investment Property

Real estate property that is purchased with the intention of earning a return on investment through rental income, the future resale of the property, or both.

Stocks

Shares of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.

Commodity Contracts

Commodity contracts are legally binding agreements for the purchase or sale of physical goods or raw materials at a predetermined price and future date.

Buyer

A buyer is a person or entity that purchases goods or services from a seller in exchange for money or other consideration.