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:

Hybrid Mode

A combination of different methods, systems, or designs, often referring to working environments that blend in-office and remote work practices.

Consortium

A group of companies or institutions that collaborate on a common project or share resources to achieve a specific goal.

Lobbying Activities

Efforts to influence government decision-makers by individuals or groups, often to benefit private, specific interests.

Ally

A state or entity that cooperates with another for a mutual benefit, particularly in political or military contexts.