When an Unearned Revenue Is Initially Recorded as a Revenue

question 8

Multiple Choice

When an unearned revenue is initially recorded as a revenue, the adjusting entry would affect net income as follows:

• A)decrease.
• B)no effect.
• C)increase.
• D)Current income is correct and next periods income is incorrect.

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Definitions:

Informational Appeal

Advertising or communication strategies that focus on providing factual information or logical arguments to persuade consumers.

Emotional Appeal

A persuasive technique used in advertising and marketing to create an emotional response in the audience, aiming to influence their purchasing decisions.

Utilitarian Needs

The practical or functional aspects that consumers consider when purchasing a product, focusing on the utility and efficiency it provides.

Emotional Appeal

A marketing or communication strategy designed to elicit an emotional response from the target audience to encourage engagement or action.