Which of the following is true regarding unearned revenue? O When it is received, only the balance sheet and the statement of cash flows are impacted. When it is earned, cash and revenue are increased. O Liabilities and revenue are increased when it is received. O There is no entry on the company's books and records until it is earned. O When it is earned, the balance sheet, income statement, and the statement of cash flows are impacted.

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 34E
icon
Related questions
Question

Please help me with the question in the screenshot.

Which of the following is true regarding unearned revenue?
When it is received, only the balance sheet and the statement of cash flows are impacted.
When it is earned, cash and revenue are increased.
Liabilities and revenue are increased when it is received.
There is no entry on the company's books and records until it is earned.
When it is earned, the balance sheet, income statement, and the statement of cash flows are
impacted.
Transcribed Image Text:Which of the following is true regarding unearned revenue? When it is received, only the balance sheet and the statement of cash flows are impacted. When it is earned, cash and revenue are increased. Liabilities and revenue are increased when it is received. There is no entry on the company's books and records until it is earned. When it is earned, the balance sheet, income statement, and the statement of cash flows are impacted.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps with 2 images

Blurred answer
Knowledge Booster
Database design
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting Intro Concepts Meth/Uses
Financial Accounting Intro Concepts Meth/Uses
Finance
ISBN:
9781285595047
Author:
Weil
Publisher:
Cengage
Business/Professional Ethics Directors/Executives…
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage