Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 7 - No. 35)
What is the purpose of recognizing accrued revenue?
To match revenues and expenses in the correct period.
To ensure that the company has an accurate net income.
To increase the value of current liabilities
To record the revenue earned but not yet received.
Explanation
Accrued revenue follows accrual accounting principles, so the main goals are to be accurate and follow accounting standards.
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