Which of the Following Is True of Accrued Revenues

question 60

Multiple Choice

Which of the following is true of accrued revenues?

• A)Accrued revenues at the end of one accounting period often result in cash receipts from customers in the next period.
• B)Accrued revenues at the end of one accounting period often result in cash payments in the next period.
• C)Accrued revenues are also called unearned revenues.
• D)Accrued revenues are listed on the balance sheet as liabilities.
• E)Accrued revenues are recorded at the end of an accounting period because cash has already been received for revenues earned.

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Definitions:

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life, typically a minimal amount reflecting its residual value.

Straight-Line Method

A depreciation method that allocates an equal amount of the cost of an asset to each year of its useful life.

Scrap Value

The projected amount an asset is expected to generate when it is sold after reaching the end of its lifespan.

Double-Declining-Balance

A method of accelerated depreciation which doubles the rate of straight line depreciation, expensing more of the asset's value in the early years of its life.