Accrued revenues are typically recorded as which type of accounts until cash is received?

Accrued revenues are recorded as assets because they represent amounts that are earned by the company for goods or services provided to customers, but for which cash has not yet been received. In financial accounting, when a business completes a service or delivers a product, it recognizes the revenue it has earned, regardless of whether payment has been made. This is in accordance with the accrual basis of accounting, which emphasizes the recognition of revenues when they are earned, not necessarily when cash is received.

When these revenues are accrued, they are typically recorded in accounts such as "Accounts Receivable," which are classified as current assets on the balance sheet. This classification reflects the expectation that the company will convert these accrued revenues into cash in the future, once the customer pays. Thus, the correct categorization of accrued revenues clearly identifies their nature as assets, aligning with the principles of accrual accounting.