Final answer:
Unrealized receivables refer to accounts receivable in accrual method partnerships, where income is recognized when it's earned, not when it's received. The correct option is B.
Step-by-step explanation:
Unrealized receivables include accounts receivable for accrual method partnerships. This is because under the accrual accounting method, income is reported when earned, not when received. Therefore, services rendered or goods sold on credit contribute to accounts receivable and represent unrealized receivables until cash is actually received.
Conversely, with the cash method of accounting, income is not recorded until it is received in cash or cash equivalents, which means there would be no unrealized receivable since the transaction is not recorded until payment is realized.