The Adjusting Entry for Unearned Revenue Always Involves A

question 69

Multiple Choice

The adjusting entry for unearned revenue always involves a:

• A) debit to a revenue account and a credit to a liability account
• B) debit to a liability account and a credit to a revenue account
• C) debit to an asset account and a credit to a liability account
• D) debit to an asset account and a credit to a revenue account

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Definitions:

Flexible Lending Arrangements

Financial agreements that offer adaptable repayment terms to accommodate the borrower's financial situation.

Asset-Based Lending

A type of financing where loans are given based on the value of an individual's or company's assets.

Loan Collateral

Assets or property pledged by a borrower to secure a loan, serving as a guarantee for the lender that the loan will be repaid.

Liquidation Value

The estimated total value of a company's physical assets if it were to be terminated and the assets sold, typically assessed in the context of a business facing bankruptcy.