An Example of an Adjusting Entry Involving a Deferred Revenue

question 70

Multiple Choice

An example of an adjusting entry involving a deferred revenue is

• A) Cash ...............................xxx
• Unearned Rental Revenue ..........xxx
• B) Rental Revenue .....................xxx
• Cash .............................xxx
• C) Unearned Rental Revenue ............xxx
• Rental Revenue ...................xxx
• D) Accounts Receivable ................xxx
• Sales ............................xxx

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Definitions:

Unit Tax

A fixed amount of tax imposed on a product, regardless of its price.

Total Costs

The sum of all costs incurred by a firm in producing a certain level of output, including both fixed and variable costs.

Edited and Typeset

The process of preparing and arranging written material for printing or digital publication by correcting, making changes, and setting the final layout.

Marginal Cost

The extra financial burden of producing an additional unit of a product or service.