All of the Following Are Regarding Unearned Revenues Except

question 214

Multiple Choice

All of the following are regarding unearned revenues except:

• A) They are payments received in advance of services performed.
• B) The adjusting entry for unearned revenues increases assets and increases revenues.
• C) The adjusting entry for unearned revenues increases revenues and decreases liabilities.
• D) They are liabilities.
• E) As they are earned, they become revenues.

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Definitions:

3PL Users

Individuals or companies that utilize third-party logistics providers to outsource elements of their distribution and fulfillment services.

4PL Providers

Fourth-Party Logistics providers manage the entire supply chain ecosystem for their clients, offering comprehensive logistics solutions including strategy and planning.