Unearned Revenue Is a ________ Account and Carries a ________

question 31

Multiple Choice

Unearned Revenue is a ________ account and carries a ________ normal balance.

• A)liability; credit
• B)asset; credit
• C)revenue; debit
• D)asset; debit

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Definitions:

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and thus written off as a bad debt expense.

Idle Cash

Idle cash refers to funds that are not currently invested, earning interest, or being used in operations, often representing missed opportunities.

Treasury Bills

Short-term government securities with maturities ranging from a few days to 52 weeks, often considered risk-free investments.

Commercial Paper

An unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.