Asked by

christian nguegang
on Nov 15, 2024

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From the following items, which would most likely cause the recording of unearned revenue?

A) Receipt of a purchase order
B) Purchase of merchandise on account
C) Legal fees collected after work is performed
D) Subscriptions collected in advance for a magazine

Unearned Revenue

Money received by a company for goods or services yet to be delivered or performed.

Purchase Order

A commercial document and first official offer issued by a buyer to a seller, indicating types, quantities, and agreed prices for products or services.

Legal Fees

Costs incurred for legal services provided by lawyers or law firms to individuals or corporations.

  • Understand the procedure of identifying and adjusting for revenues not yet earned.
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shivika sharmaNov 20, 2024
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