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:

Diatomaceous Earth

A naturally occurring, soft, siliceous sedimentary rock that is easily crumbled into a fine white to off-white powder, used in various industrial and commercial applications.

Pellicle

Structure that supports the cell membrane of some species of protists; used to maintain structure in a water environment.

Dinoflagellates

A group of protists characterized by two flagella, forming part of both marine and freshwater plankton and often producing harmful algal blooms.

Euglenoids

A diverse group of single-celled organisms belonging to the kingdom Protista, characterized by their flexible cell membranes and the presence of a flagellum.