The Adjusting Entry for Unearned Revenue Always Involves A

question 31

Multiple Choice

The adjusting entry for unearned revenue always involves a:

• A) debit to a revenue account and a credit to a liability account
• B) debit to an asset account and a credit to a liability account
• C) debit to a liability account and a credit to a revenue account
• D) debit to an asset account and a credit to a revenue account

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Definitions:

Departments

Distinct divisions within a company or organization designated to handle specific tasks or functions, such as sales, marketing, or human resources.

Catering Department

A division within a company or a facility that is responsible for providing food services for events, meetings, and functions.

Profit Center

A segment or division of a company that is directly responsible for generating its own revenue and profit.

Cost Center

A department or function within a business to which costs are charged for accounting purposes, but does not directly generate revenue.