How Does the Adjusting Entry to Recognize the Portion of the Unearned

question 47

Multiple Choice

How does the adjusting entry to recognize the portion of the unearned revenue that a company earned during the accounting period affect the elements of the financial statements?

• A)An increase in assets and a decrease in liabilities.
• B)An increase in liabilities and a decrease in equity.
• C)A decrease in liabilities and an increase in equity.
• D)A decrease in assets and a decrease in liabilities.

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Definitions:

Physical Decline

The gradual reduction in physical abilities and functions as part of the aging process or due to illness.

Puberty

The developmental stage in which an individual matures sexually and reaches reproductive capability.

Sexual Organs

Body parts involved in the reproductive process, including internal and external structures.

Secondary Aging

The aging process that occurs due to controllable factors such as lifestyle choices, illnesses, and environmental influences, as opposed to primary aging which is inevitable genetic aging.