Asked by Tyesha Valles on Jul 03, 2024
Verified
When the adjustment for Unearned Rent Revenue is made:
A) liabilities decrease.
B) revenue increases.
C) assets decrease.
D) Both A and B are correct.
Unearned Rent Revenue
Income received by a company for rent that has been paid in advance by tenants but not yet earned, considered a liability until the rental period occurs.
Liabilities
Financial obligations or debts that a company owes to external parties, which must be settled over time through the transfer of assets, provision of services, or other forms of economic benefit.
Revenue
The cumulative revenue produced from the sale of goods or provision of services directly linked to the main business activities of a company.
- Master the approach for identification and adjustment of unearned revenues.
- Master the process for adjusting entries for various types of accounts and transactions.
Verified Answer
Learning Objectives
- Master the approach for identification and adjustment of unearned revenues.
- Master the process for adjusting entries for various types of accounts and transactions.
Related questions
On November 1, Call Center Received $4,800 for Two Years ...
Which of the Following Accounts Would Likely Be Included in ...
Which of the Following Is Considered to Be Unearned Revenue ...
How Will the Following Adjusting Journal Entry Affect the Accounting ...
The Type of Account and Normal Balance of Unearned Consulting ...