The Adjusting Entry Required When Amounts Previously Recorded as Unearned

question 50

Multiple Choice

The adjusting entry required when amounts previously recorded as unearned revenues are earned includes:

• A)A debit to a liability.
• B)A debit to an asset.
• C)A credit to a liability.
• D)A credit to an asset.

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Definitions:

Seeking Recovery

The act of attempting to obtain restitution or compensation for loss or damage incurred.

Notice of Dishonor

A formal notification indicating that a negotiable instrument, such as a check or bill of exchange, has been presented for payment and refused.

Cashier's Check

A check issued by a bank, drawn from its own funds and signed by a cashier or teller, guaranteeing payment to the payee.

Primarily Liable

Being the first or main party responsible for fulfilling a financial or legal obligation.