Which of the Following Is an Example of Accrued Revenue

question 127

Multiple Choice

Which of the following is an example of accrued revenue?

• A) snow removal services that have been paid for three months in advance
• B) snow removal services that have been provided but have not been billed or paid
• C) an agreement that has been signed for snow removal services for the next three months
• D) snow removal services that have been provided and paid on the same day

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Definitions:

Trade Credit

Short-term financing extended by a seller to a buyer allowing the latter to purchase goods or services and pay for them at a later date.

Trade Credit

The credit extended to a buyer by a supplier, allowing the buyer to purchase goods or services and pay for them at a later date.

Trade Creditors

Trade creditors refer to suppliers from whom a business has purchased goods or services on credit, payable within a short period, typically less than one year.

Credit Checks

A review of an individual's or company's financial history, often performed by a lender or financial institution, to assess the risk of lending money or extending credit.