A liability-revenue account relationship exists with an unearned rent revenue adjustment.

Question

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Unearned rent revenue is a liability account that represents payments received in advance for rent that has not yet been earned. When the rent is earned, the liability account is reduced and a revenue account is increased. Therefore, there is a liability-revenue account relationship with an unearned rent revenue adjustment.

A Liability-Revenue Account Relationship Exists with an Unearned Rent Revenue