All of the Following Are True Regarding Unearned Revenues Except

question 66

Multiple Choice

All of the following are true regarding unearned revenues except:

• A)They are payments received in advance of services performed.
• B)The adjusting entry for unearned revenues increases assets and increases revenues.
• C)The adjusting entry for unearned revenues increases revenues and decreases liabilities.
• D)They are liabilities.
• E)As they are earned,they become revenues.

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Definitions:

Calm

A state of peace and tranquility, free from agitation, excitement, or disturbance.

Proneness

The tendency or likelihood of experiencing a particular condition or event.

Anger

A strong feeling of annoyance, displeasure, or hostility.

Coronary Heart Disease

A condition characterized by reduced blood flow to the heart muscle due to the build-up of plaque in the coronary arteries, leading to heart attacks.