Match the following types of adjustments with the appropriate transactions.
-Unearned revenue
A)Used to record wages owed, but not yet paid.
B)Used to record revenue earned for which cash was received in advance.
C)Used to record revenue earned for which cash has not been received.
D)Used to record expiration or use of prepaid insurance.

Question

Quizplus · Accepted Answer

Unearned revenue adjustments are used to record revenue that has been received in advance but not yet earned, which matches option B. This means that the company has received payment for goods or services that it has yet to provide.

Match the Following Types of Adjustments with the Appropriate Transactions