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:

Circular Flow

An economic model illustrating the continuous flow of goods and services, resources, and money between businesses and households in an economy.

Gross Domestic Product

A measure of the economic performance of a country, representing the total value of all goods and services produced over a specific time period.

Social Welfare

A system that provides various forms of assistance to individuals and families in need, including healthcare, education, and financial aid.

Value Added

The increase in the value of a product or service as it passes each stage of production, excluding the cost of inputs.