Unearned revenue is initially recognized with a
A) debit to cash and credit to revenue.
B) debit to cash and credit to unearned revenue.
C) debit to revenue and credit to cash.
D) debit to unearned revenue and credit to cash.

Question

Quizplus · Accepted Answer

Unearned revenue is initially recognized by debiting cash (an asset account) and crediting unearned revenue (a liability account) because the company has received cash but has not yet earned the revenue.

Unearned Revenue Is Initially Recognized with a