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.

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Definitions:

Southern Europe

A region of Europe covering the southern part of the continent, including countries like Spain, Italy, Greece, and Portugal, known for its Mediterranean climate.

Eastern Europe

A region that encompasses many countries to the east of Germany and west of the Ural Mountains, often including nations such as Poland, Hungary, and the Czech Republic.

Yellow Press

Sensationalism in newspaper publishing that reached a peak in the circulation war between Joseph Pulitzer’s New York World and William Randolph Hearst’s New York Journal in the 1890s; the papers’ accounts of events in Havana Harbor in 1898 led directly to the Spanish-American War.

Sensational Accounts

Reports or stories exaggerated or sensationalized to attract attention or provoke public interest and emotional reactions.