When an Unearned Revenue Is Initially Recorded as a Revenue

question 105

Multiple Choice

When an unearned revenue is initially recorded as a revenue, the adjusting entry would include a:

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

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Definitions:

Horizontal Asymptote

A line that a graph approaches but never touches as the inputs grow large in magnitude.

\(g(x)\)

Represents a function named g that is dependent on a variable x.

Graph

A visual outline that maps the structure of relationships or interconnections among a number of things using specific signs like dots, lines, and bars.

Horizontal Asymptote

A horizontal line that a graph approaches but never reaches as the independent variable approaches infinity or negative infinity.