3. Accrual Accounting Concepts

Which of the following is an example of accrued revenue?

Once a trial balance has been prepared, the next step of the accounting cycle involves:

Which of the following accounts would likely be included in an accrual adjusting entry for accrued revenues?

Which of the following is an example of an adjusting entry for accrued revenues?

Which of the following transactions constitutes an accrual adjustment involving a revenue account?

Which of the following does NOT require an adjusting entry for accrued revenues at year-end?

Which of the following best describes accrued revenue?

When adjusting gross requirements for inventory on hand and scheduled receipts, what is the resulting value called?

Wang Company has earned \$2,000 in service revenue at year-end that has not yet been billed or recorded. Which adjusting entry should Wang Company make to recognize this accrued revenue?

Which of the following situations requires an adjusting entry that is not a prepayment or an accrual entry?

Which of the following journal entries records the adjustment for revenue that has been earned but not yet collected at the end of the accounting period?

Why is it necessary to make adjusting entries for accrued revenues at the end of the accounting period?

Which of the following pairs of accounts could NOT appear together in the same adjusting entry for accrued revenues?

Accrued revenues are revenues that are earned in a period but are both unrecorded and not yet received in cash. Which of the following best describes accrued revenues?

When accounting for accrued revenues, how should changes in estimated option forfeitures be recognized?