When an Unearned Revenue Is Initially Recorded as a Revenue

question 122

Multiple Choice

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

• A)transfers the earned portion to a liability account.
• B)transfers the earned portion to a revenue account.
• C)transfers the unearned portion to a revenue account.
• D)transfers the unearned portion to a liability account.

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Definitions:

Denominator

The bottom number in a fraction, indicating into how many parts the whole is divided.

Unit Value

The worth assigned to a single unit of an item, used to calculate cost, quantity, or other statistical measures.

Fraction

A mathematical expression representing a part of a whole, displayed as a numerator over a denominator.

Percentage

A numerical value representing a part of 100, signaled by a fraction or ratio.