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:

Reasonable Expenses

Costs incurred that are considered fair, appropriate, and necessary for the circumstances.

Substitute Widgets

Hypothetical or actual replacement products that serve the same function or purpose as another product in a market context.

Incidental Damages

Financial compensation for reasonably associated losses stemming from a breach of contract, aside from direct damage costs.

Inspecting

The process of examining something carefully in order to ascertain its condition, quality, or compliance with certain standards or regulations.