Before Adjusting Entries, Unearned Revenues Are

question 113

Multiple Choice

Before adjusting entries, unearned revenues are:

• A)received and recorded as liabilities before they are recognized as revenue.
• B)recognized as revenue and recorded as liabilities before they are received.
• C)recognized as revenue but not yet received or recorded.
• D)recognized as revenue and already received and recorded.

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Definitions:

Unit Product Cost

The total cost (both direct and indirect) associated with producing a single unit of a product.

Activity-Based Costing

A costing method that assigns expenses to products and services based on the resources they consume.

Direct Labor-Hours

A measure of the total time worked by employees directly involved in the manufacturing process or providing services, often used to allocate manufacturing overhead.

Traditional Costing

Traditional Costing is a method of costing that allocates manufacturing overhead costs to products based on the volume of production resources consumed, such as labor hours or machine hours.