Assuming Unearned Revenues Are Originally Recorded in Balance Sheet Accounts

question 131

Multiple Choice

Assuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:

• A) Increase an expense; increase a liability.
• B) Increase an asset; increase revenue.
• C) Decrease a liability; increase revenue.
• D) Increase an expense; decrease an asset.
• E) Increase an expense; decrease a liability.

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Definitions:

Childhood Disintegrative Disorder

A rare condition characterized by late onset (at least after two years of normal development) of developmental delays in language, social function, and motor skills.

Asperger's Disorder

A former diagnostic category denoting a higher-functioning form of autism characterized by significant difficulties in social interaction and nonverbal communication, alongside restricted and repetitive patterns of behavior and interests.

Rett's Disorder

A rare genetic neurological and developmental disorder that affects the way the brain develops, leading to a progressive loss of motor skills and speech.

Preservation Of Sameness

The need or desire for consistency, routine, and predictability in one's environment, often emphasized in discussions of autism spectrum disorders as a common characteristic.