An Example of Unearned Revenues

question 44

Multiple Choice

An example of unearned revenues

• A) Collecting 3 months rent in advance
• B) Paying 3 months rent in advance
• C) Collecting the current month's rent
• D) Paying the current month's rent

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Definitions:

Future Sum

The amount of money or value to be received or paid at a specified date in the future.

Interest Rate

The fee, represented as a fraction of the initial sum, that a creditor levies on a debtor for asset utilization.

Interest Rates

A borrower pays this rate, calculated as a percentage of the principle, to a lender in exchange for the use of assets.

Investments

Assets or commodities acquired with the intention of generating income or appreciating in value over time.