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.

---

Definitions:

Budgeted Beginning Inventory

The estimated value or quantity of inventory that a company plans to have on hand at the start of a period.