All of the Following Are True Regarding Unearned Revenues Except

question 149

Multiple Choice

All of the following are true regarding unearned revenues except:

• A) The adjusting entry for unearned revenues increases assets and increases revenues.
• B) The adjusting entry for unearned revenues increases revenues and decreases liabilities.
• C) They are payments received in advance of services performed.
• D) They are liabilities.
• E) As they are earned, they become revenues.

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Definitions:

Thought Suppression

The conscious avoidance of certain thoughts, particularly those that are distressing or unwanted.

Misattribution

A cognitive process where a person incorrectly attributes the source of a memory, emotion, or thought, often leading to inaccurate perceptions or judgments.

Distraction

A factor that diverts attention away from the primary task, potentially lowering the quality of performance.

Rumination

The compulsive focused attention on the symptoms of one's distress, and on its possible causes and consequences, as opposed to its solutions.