A magazine publisher has an account called "Unearned Subscription Revenue." The transaction that causes the balance of this account to decrease is:
A)cash is received from new subscribers.
B)magazines are printed for the publisher.
C)magazines are mailed to subscribers.
D)subscriptions are sold to new subscribers.

Question

Quizplus · Accepted Answer

When magazines are mailed to subscribers, the publisher earns the revenue, thus decreasing the "Unearned Subscription Revenue" account as the obligation to deliver the magazines is fulfilled.

A Magazine Publisher Has an Account Called "Unearned Subscription Revenue