What Is the Adjusting Entry for That Portion of Revenue

question 9

Multiple Choice

What is the adjusting entry for that portion of revenue received in advance which has now been earned?

• A)Unearned Revenue - Debit;Cash - Credit
• B)Unearned Revenue - Debit;Service Revenue - Credit
• C)Service Revenue - Debit;Unearned Revenue - Credit
• D)Cash - Debit;Unearned Revenue - Credit

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Definitions:

Parent Company

A corporation that owns enough voting stock in another corporation to control its management and operations.

Amortization

The process of gradually writing off the initial cost of an asset over its useful life.

Bond Investment

An investment in debt securities issued by corporations or governments to finance their operations.

Other Comprehensive Income

Other Comprehensive Income represents revenues, expenses, gains, and losses not included in net income, and reflects changes in equity during a period except those resulting from investments by and distributions to owners.