Q139
Revenue earned but not yet received by the business is known as
A.
Contra asset revenue
B.
Accrued expenses
C.
Accrued revenue
AnswerD.
Unearned revenue
Answer: Option C
Solution
Answer: Option C
Solution:
Revenue earned but not yet received by the business is known as Accrued revenue. Accrued income is very important in accounting because companies receive advances for their goods or services all the time. To prevent overstating certain accounts, companies need to differentiate between the revenue that they have earned versus revenue that they have not earned yet.