Asked by Michelle Mazur on Apr 26, 2024
Verified
The account type and normal balance of Unearned Revenue is
A) revenue, credit
B) expense, debit
C) liability, credit
D) asset, debit
Unearned Revenue
Income received by a company for goods or services that have yet to be delivered or performed, also known as deferred revenue.
Normal Balance
The side (debit or credit) of an account that is typically increased. For example, assets and expenses usually have a debit normal balance, while liabilities, equity, and revenue have a credit normal balance.
- Identify the differences between assets, liabilities, and owners' equity when making adjusting entries.
Verified Answer
LS
Lindsay SidellApr 29, 2024
Final Answer :
C
Explanation :
Unearned Revenue is a liability account which represents the advance payment received by a company for goods or services that are still to be provided in the future. The normal balance of a liability account is credit.
Learning Objectives
- Identify the differences between assets, liabilities, and owners' equity when making adjusting entries.