Which of the following is true of unearned revenue? It is a liability account that is increased when cash is received but not yet earned. It is a revenue account that is increased when the cash is received, whether or not it has been earned. When unearned revenue is received, both total liabilities and total revenue are increased. O When unearned revenue is earned, both total assets and total revenue are increased. When unearned revenue is earned, total assets are increased and total liabilities are decreased.

Which of the following is true of unearned revenue? It is a liability account that is increased when cash is received but not yet earned. It is a revenue account that is increased when the cash is received, whether or not it has been earned. When unearned revenue is received, both total liabilities and total revenue are increased. O When unearned revenue is earned, both total assets and total revenue are increased. When unearned revenue is earned, total assets are increased and total liabilities are decreased.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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