Accrued revenues would appear on the balance sheet as which of the following?

• A. Liabilities
• B. Assets
• C. Equity
• D. Revenues

Answer: (B)

Accrued revenues are revenues earned but not yet billed or collected. Under accrual accounting, earning revenue creates a claim to future cash, so it is recorded as an asset on the balance sheet (often as accounts receivable or a separate accrued revenue line). Revenues themselves are reported on the income statement when earned, not on the balance sheet. So accrued revenues increase assets now and are recognized as revenue on the income statement, with the asset typically becoming cash or accounts receivable once billing occurs.