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14 December, 05:50

The adjusting entry to record an accrued revenue is:

a. Increase an expense; increase a liability.

b. Increase an asset; increase revenue.

c. Decrease a liability; increase revenue.

d. Increase an expense; decrease an asset.

e. Increase an expense; decrease a liability.

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Answers (1)
  1. 14 December, 08:56
    0
    The correct answer is c. Decrease a liability; increase revenue.

    Explanation:

    For example a company receives advance of $ 500 against good to be deliver after one week. On receiving cash company will record following entry.

    Debit Cash $ 500

    Credit Revenue liability $ 500

    On date of sale or delivery following data will be recorded.

    Debit Revenue liability $ 500

    Credit Revenue income $ 500
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Home » Business » The adjusting entry to record an accrued revenue is: a. Increase an expense; increase a liability. b. Increase an asset; increase revenue. c. Decrease a liability; increase revenue. d. Increase an expense; decrease an asset. e.
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