The Unearned Revenue Account Would Be Used When a Company

question 49

Multiple Choice

The Unearned Revenue account would be used when a company

• A) collects cash and earns the revenue in the same fiscal period.
• B) collects cash and earns the revenue over two fiscal periods.
• C) pays cash for services not yet earned.
• D) pays cash for services earned in two fiscal periods.
• E) does none of these.

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Definitions:

Independent Clauses

Sentences or parts of a sentence that can stand alone as a complete thought because they have both a subject and a verb.

Dependent Clause

A group of words with a subject and verb that cannot stand alone as a complete sentence because it does not express a complete thought.

Comma Splice

A grammar error that occurs when two independent clauses are incorrectly joined by a comma without a conjunction.

Missing Modifier

A grammatical error where a modifier (a word or phrase that provides more information about another word) is absent or misplaced, leading to unclear or ambiguous sentences.