Chapter 3 Discussion - quite often services are provided...

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Accrued revenue is an asset , such as unpaid proceeds from a delivery of goods or services, at which such income item is earned and the related revenue item is recognized, while cash for them is to be received in a latter period, when its amount is deducted from accrued revenues . Examples of accrued revenue items might be services you have provided but that have not yet been billed or paid for. The service industries account for a large number of accrued revenue transactions, since
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Unformatted text preview: quite often services are provided over a week, month, or even year, but aren’t billed until the job is complete. One of the most basic concepts of accounting involves determining if an item is an asset or a liability. Accrued revenues are assets that unless properly accounted for, will not provide an accurate picture on the balance sheet for a business....
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This note was uploaded on 12/13/2009 for the course ACCOUNTING ACC 100 A taught by Professor A during the Fall '09 term at University of Phoenix.

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