Discuss the Accounting Principle Served by Crediting Amounts Received (Which

question 20

Essay

Discuss the accounting principle served by crediting amounts received (which will not be earned during the present fiscal period) to an Unearned Revenue account instead of to the Revenue account. Give an example of a business in which this might occur. Explain how failure to make an adjustment to the Unearned Revenue account and the Revenue account would affect the financial statements.

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Definitions:

McCain

John McCain, a significant figure in American politics, was a U.S. Senator from Arizona and the Republican presidential nominee in 2008.

Freedom Schools

Free, temporary, alternative schools for African Americans, mostly in the South, which were part of the Civil Rights Movement during the 1960s, aimed at empowering black communities through education.

Freedom Summer

Freedom Summer was a 1964 voter registration drive aimed at dramatically increasing voter registration in Mississippi, a key part of the larger Civil Rights Movement, noted for its grassroots activism and the significant violence it faced.

Morgan v. Commonwealth

A legal case wherein Daniel Morgan, a black man, challenged Virginia’s racial integrity laws, focusing on issues of race and legal rights in the early 19th century.