Question

An accrued revenue represents:

		Revenue being recorded at the same time the cash is collected from the customer.
		Customers paying cash in advance of the good or service to be provided.
		Revenue being recorded prior to cash collection from the customer.
		Cash being collected from the customer prior to the revenue being recorded.

Answer 1

Your required answer is option C i.e. Revenue being recorded prior to cash collection from the customer.

Explanation:

Accrued revenue means the we have done sales or service and recorded the same but we have not received the cash yet. In simple terms it means revenue is recorded but cash collection is pending.

I hope this clear your doubt.

Feel free to comment if you still have any query or need something else. I'll help asap.

Do give a thumbs up if you find this helpful.