Asked by
Kanika Birla
on Nov 15, 2024
Verified
As Unearned Rent Revenue is earned, it becomes:
A) an asset.
B) a revenue.
C) a liability.
D) an expense.
Unearned Rent Revenue
Income received by a landlord in advance of providing rental space or services, recognized as a liability until the obligation is fulfilled.
Asset
An asset of monetary worth that is possessed or managed by a person, company, or nation, with the anticipation that it will yield benefits in the future.
Liability
A company's legal financial debts or obligations that arise during the course of business operations.
- Discern the characteristics and hierarchy of several account types, such as Assets, Liabilities, Revenue, and Expenses.
- Develop an insight into how recognition and adjustment for unearned revenues are managed.
Verified Answer
OM
Learning Objectives
- Discern the characteristics and hierarchy of several account types, such as Assets, Liabilities, Revenue, and Expenses.
- Develop an insight into how recognition and adjustment for unearned revenues are managed.