The Classification and Normal Balance of the Unearned Revenue Account

question 135

Multiple Choice

The classification and normal balance of the unearned revenue account is

• A)asset, debit.
• B)liability, credit.
• C)revenues, credit.
• D)shareholders' equity, credit.

Identify unused capacity cost and its implications on financial statements.

Analyze the effect of overhead allocation on product costs and pricing strategies.

Evaluate the impact of manufacturing overhead costs on gross margin.

Recognize the role of capacity in determining overhead rates and its impact on product costing.