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:

Asylum Seekers

Individuals who flee their home country to seek protection elsewhere due to persecution, violence, or fear of harm based on various grounds.

Family Class Sponsorships

A program specific to certain countries like Canada, allowing citizens or permanent residents to sponsor relatives, including spouses, partners, children, or other eligible relatives for immigration.

Economic Class

An immigration category that includes federal and Quebec-selected skilled workers, federal and Quebec-selected business immigrants, provincial and territorial nominees, the Canadian Experience Class (CEC), and caregivers, as well as spouses, partners, and dependants who accompany the principal applicants in any of these economic categories (Government of Canada, 2016a).

Refugee Class

A classification within immigration policy referring to individuals granted asylum or refugee status due to persecution or fear of persecution in their home countries.