Which of the Following Is an Example of an Unearned

question 23

Multiple Choice

Which of the following is an example of an unearned revenue adjusting entry?

• A)Dr.Rent expense, Cr.Prepaid rent
• B)Dr.Wages expense, Cr.Wage payable
• C)Dr.Unearned revenue, Cr.Revenue
• D)Dr.Accounts receivable, Cr.Sales

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Definitions:

Creditor

An individual or institution that lends money or extends credit to another, with the expectation of being repaid.

Stale Check

A check, other than a certified check, that is presented for payment more than six months after its date.

Good Faith

A concept involving an honest intention to act without taking an unfair advantage over another party, typically implied in agreements or transactions.

Uncertified Check

A check that the bank has not guaranteed or verified regarding the availability of funds, standing in contrast to a certified check.