A month-end adjustment records $7,850 of earned but unbilled revenue. What amount increases revenue?
Correct Answer
D) $7,850
The full earned but unbilled amount is recognized as revenue.
Why This Is the Correct Answer
The full earned but unbilled amount is recognized as revenue.
Why the Other Options Are Wrong
Option A: $0
$0 is below the supported result for accrued income; it likely uses the wrong base, period, or account bucket.
Option B: $3,925
$3,925 is below the supported result for accrued income; it likely uses the wrong base, period, or account bucket.
Option C: $15,700
$15,700 is above the supported result for accrued income; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Accrued Income drawer for Accountant Records: label full before counting dollars.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Three, Recording Before the Event, Accrued Income; use the job ledger figures in the stem and recompute the same accounting measure.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?
People Also Study
Related Study Resources
Previous Question
A Florida job has expected revenue of $2,250,000 and expected cost of $1,800,000. If it is 35% complete, what gross profit is earned to date?
Next Question
The Delray Beach approval matrix requires owner approval for administrative purchases over $25,000. A proposed software renewal is $42,000. What record should be in the file before ordering?