Assuming Unearned Revenues Are Originally Recorded in Balance Sheet Accounts

question 167

Multiple Choice

Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:

• A) Decrease a liability; increase revenue.
• B) Increase an expense; increase a liability.
• C) Increase an expense; decrease a liability.
• D) Increase an asset; increase revenue.
• E) Increase an expense; decrease an asset.

---

Definitions:

Disease

A particular abnormal condition that negatively affects the structure or function of all or part of an organism, and that is not due to any external injury.

Holistic Medical Practitioner

A healthcare professional who treats patients by considering their physical, emotional, social, and spiritual needs.

Positive Outlook

A mental attitude characterized by hope and confidence in success and a positive future.

Sociological Issue

A problem or challenge that affects individuals or groups within a society, often requiring collective solutions or interventions.