Why Would the Unearned Revenue Account Need to Be Adjusted

question 94

Multiple Choice

Why would the Unearned revenue account need to be adjusted at the end of the period?

• A)Revenue that had been deferred is now earned.
• B)Revenue has been recorded,and cash has not yet been received.
• C)Liabilities are unrecorded.
• D)Assets would otherwise be understated.

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Definitions:

Elastic Demand

A condition where the quantity demanded of a good or service significantly changes in response to a change in its price.

Efficiency Loss

The decrease in economic effectiveness that occurs when a good or service does not reach or cannot reach its equilibrium state.

Excise Tax

A type of tax imposed on specific goods, services, or activities, often with the goal of discouraging their use or consumption.

Market Situations

Various conditions under which a market operates, influenced by factors like competition, demand, and supply.