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.

---

Definitions:

Issue

A point of debate or contention that arises in legal or other formal contexts, requiring resolution or discussion.

Form Books

A collection of legal forms and templates used by attorneys to draft documents.

Complaint Drafting

The process of creating a legal document that initiates a lawsuit by outlining the plaintiff's allegations against the defendant.

Firm's Library

A collection of legal books, journals, and digital resources maintained by a law firm to support its legal research needs.