Which of the following would not result in unearned revenue?


.. Which of the following would not result in unearned revenue? a. Rent collected in advance from tenants b. Services perform
If a business has received cash in advance of services performed and credits a liability account, the adjusting entry needed

Answer

Solution : Part 1. Which of the following would not result in Unearned Revenue? Answer : The Answer is (b) Services performed on account. Services performed on account is services has been given but payment has not been received. in rest 3 option there is part of services are pending to be performed. So the answer is serviced performed on account. 139. Answer : The Answer is (b) debit Unearned Revenue Services and credit Service Revenue.

Cash has been received for services to be performed. In this case company has created a libility and revenue has not been recognised. Afetr performing services the company will recognise revenue and liability created earlier will be reversed. So the Answer is (b) debit Unearned Revenue Services and credit Service Revenue.

Leave a Comment