Asked by Kenrick Mendez on Jul 04, 2024
Verified
The normal balance for Unearned Rent Revenue is:
A) a credit.
B) a debit.
C) zero.
D) dependent on circumstances.
Unearned Rent Revenue
Income received by a property owner for rent that has not yet been earned because the time period the rent covers has not yet passed.
Credit
An accounting entry that increases a liability or equity account or decreases an asset or expense account.
- Become familiar with the nature and system of classification for various accounting categories like Assets, Liabilities, Revenue, and Expenses.
Verified Answer
DV
Desirae VillarrealJul 07, 2024
Final Answer :
A
Explanation :
Unearned Rent Revenue is a liability account that represents rent received in advance of providing services. According to accounting principles, liability accounts have a normal credit balance.
Learning Objectives
- Become familiar with the nature and system of classification for various accounting categories like Assets, Liabilities, Revenue, and Expenses.
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