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Up0
If at the end of the financial
reporting period, a company receives cash for books which are to be delivered
in the following period, the most appropriate accounting entry would be to
record the transaction as:- A. accrued revenue.
- B. deferred revenue.
- C. prepaid expenses.
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Up3
The correct answer is B.
The company will
record the cash received as unearned revenue. Unearned revenue or deferred
revenue arises when a company receives cash prior to earning revenues. The
company will earn revenues when the books are delivered in the following year. -
Up1
OMG my brain – I read ‘accrued revenue’ as ‘unaccrued revenue’.
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