Assuming Unearned Revenues Are Originally Recorded in Balance Sheet Accounts

question 131

Multiple Choice

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.

---

Definitions:

Fantasy

Fantasy refers to a genre of literature, film, and art that features magical or supernatural elements, often set in imaginary worlds.

Horror

A genre of fiction designed to evoke feelings of fear, dread, or horror in the audience.

Retro

A style, design, or fashion that draws inspiration from and evokes trends, music, modes, or attitudes of the past.

Milieu

The physical or social setting in which something occurs or develops; environment.