Which of the following is an example of an accrued revenue?
Question: Which of the following is an example of an accrued revenue?
Accrued revenue is a type of revenue that is earned but not yet received. It is recorded as an asset on the balance sheet until it is received and recognized as income. Accrued revenue is common in businesses that provide services or goods on credit or have long-term contracts.
One example of an accrued revenue is interest income. If a company lends money to another party and charges interest, the interest is earned over time but may not be paid until a later date. The interest that is earned but not yet received is an accrued revenue for the lender.
Another example of an accrued revenue is unbilled revenue. This occurs when a company performs a service or delivers a product to a customer but has not yet issued an invoice or received payment. The revenue that is earned but not yet billed or received is an accrued revenue for the service provider or seller.
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