Recording revenue before it is collected is an example of: Multiple Choice A prepaid expense transaction. A deferred revenue tra
nsaction. An accrued liability transaction.
1 answer:
Answer:
An Accrued Receivable transaction
Explanation:
Before the receipt of cash recording a revenue is the example of accrued receivable because product is sold or services are already been performed on which basis transaction is occurred and recorded. So, the receivable is recorded against the revenue entry.
The journal Entry for this transaction will be as follow
DR. Account receivable xxx
CR. Revenue xxx
You might be interested in