Which of these transactions requires an adjusting entry (debit) to Unearned Revenue? A. Revenue earned but not
Question:
Which of these transactions requires an adjusting entry (debit) to Unearned Revenue?
A. Revenue earned but not yet collected
B. Revenue collected but not yet earned
C. Revenue earned before being collected, when it is later collected
D. Revenue collected before being earned, when it is later earned
Step by Step Answer:
Step 1 To determine Concept introduction Adjusting entries are required to adjust the accounts accor...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
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