Asked by
shonda Bellamy
on Oct 20, 2024
Verified
Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:
A) Increase an expense; increase a liability.
B) Increase an asset; increase revenue.
C) Decrease a liability; increase revenue.
D) Increase an expense; decrease an asset.
E) Increase an expense; decrease a liability.
Unearned Revenue
Unearned revenue is income received by an entity for goods or services yet to be delivered or performed, classified as a liability on the balance sheet.
- Gain an understanding of the notions surrounding accrued expenses and revenues, including the adjustments required in entries.
Verified Answer
AG
Learning Objectives
- Gain an understanding of the notions surrounding accrued expenses and revenues, including the adjustments required in entries.