What Type of Account Is Unearned Revenue and What Is

question 87

Multiple Choice

What type of account is Unearned revenue and what is its normal balance?

• A)Liability and credit
• B)Asset and debit
• C)Asset and credit
• D)Revenue and debit

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Definitions:

Conservatism

An accounting principle that advises caution, directing accountants to choose methods and estimates that are least likely to overstate assets and income.

Fair Value Accounting

An accounting approach that measures and reports assets and liabilities at their estimated market prices.

Financial Crises

A situation where the value of financial institutions or assets drops significantly, often characterized by panicked selling and loss of confidence in the financial system.

Accounting Standards Codification

The collection and integration of the authoritative accounting standards for U.S. GAAP.