All of the Following Are True Regarding Unearned Revenues Except

question 149

Multiple Choice

All of the following are true regarding unearned revenues except:

• A) The adjusting entry for unearned revenues increases assets and increases revenues.
• B) The adjusting entry for unearned revenues increases revenues and decreases liabilities.
• C) They are payments received in advance of services performed.
• D) They are liabilities.
• E) As they are earned, they become revenues.

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Definitions:

Emotional Contagion

The phenomenon where emotions are transferred from one person to another, either consciously or unconsciously.

Self-Centered Thinking

A cognitive pattern focused on one's own perspectives, needs, and interests, often neglecting the thoughts and feelings of others.

Irreversible

Describing a process or action that cannot be undone or returned to its original state.

Content Dimensions

Aspects of a message that involve the actual information being communicated, distinct from the relationship dimensions.