If Revenue Is Earned Over Two Fiscal Periods, One Should

question 9

True/False

If revenue is earned over two fiscal periods, one should initially credit the Unearned Revenue account.

---

Definitions:

Going-concern Assumption

An accounting principle that assumes a business will continue to operate indefinitely, rather than being liquidated.

Financial Statements

Standardized documents that provide an overview of a company's financial performance and position, including the balance sheet, income statement, and cash flow statement.

Operating

Pertains to the regular, ongoing activities of a business that are involved in the production or sale of goods and services.