In the Case of Unearned Revenue, the Adjusting Entry at the End

question 132

True/False

In the case of unearned revenue, the adjusting entry at the end of the period includes a credit to Service Revenue. Assume the unearned revenue is initially recorded as a liability.

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Definitions:

Stock

Shares of a corporation that may be bought or sold.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure by the lender if the borrower defaults.