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.

Understand the importance of consistency and persistence in personal development efforts.

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Comprehend the role and legitimacy of electronic transactions and electronic agents in business according to the UETA.

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Definitions:

Canadian Dollars

The currency in use in Canada, represented by the ISO code CAD.

Exchange Rates

Exchange Rates denote the value of one currency in terms of another currency. These rates fluctuate based on market conditions and are fundamental to international finance and trade.

Service Charge

A fee collected to pay for services related to the primary product or service being purchased.

Airport Currency Exchange

Facilities located within airports where travelers can exchange one country’s currency for another's, typically at market rates.