Revenue That Has Been Earned but Not Yet Collected in Cash

question 149

Multiple Choice

Revenue that has been earned but not yet collected in cash is called a(n) :

• A)accrued revenue.
• B)prepaid expense.
• C)unearned revenue.
• D)accrued expense.

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Definitions:

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services that remain unpaid.

Direct Write-off Method

An accounting method where uncollectible accounts receivable are directly written off against income at the time they are deemed uncollectible.

Uncollectible Receivables

Amounts owed to a company that it does not expect to collect and thus considers a loss.

Journalize

The process of recording transactions in an accounting journal, noting the debit and credit aspects of each transaction.