Revenue That Has Been Earned but Not Yet Collected in Cash

question 99

Multiple Choice

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

• A) accrued revenue
• B) deferred expense
• C) deferred revenue
• D) accrued expense

---

Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated by dividing current assets by current liabilities.

Working Capital

The gap between a firm's immediate assets and its short-term obligations, reflecting the funds available for daily operations.

Quick Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its most liquid assets.

Accrued Product Warranty Expense

A liability recognized on the balance sheet for potential future costs related to warranty claims on products sold.