Recording Revenue That Is Earned,but Not Yet Collected,is an Example

question 121

Multiple Choice

Recording revenue that is earned,but not yet collected,is an example of:

• A)A prepaid expense transaction.
• B)A deferred revenue transaction.
• C)An accrued liability transaction.
• D)An accrued receivable transaction.

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Definitions:

Credit

A journal entry that results in an increase in a liability or equity account or a reduction in an asset or expense account.

Overstated

Describing financial statements or figures that have been reported at a value higher than the true or fair value.

Understated

Describes when figures or values are represented in accounting records as less than their true or actual amount.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal, used to verify the accuracy of the bookkeeping system.