Unearned Revenue was $600 at the end of February and $750 at the end of March.Service Revenue was $3,600 for the month of March.How much cash was received from revenue during March?
A)$4,950
B)$3,450
C)$2,250
D)$3,750

Question

Quizplus · Accepted Answer

Cash received from revenue can be calculated as follows:

Cash received from revenue = Service Revenue - Increase in Unearned Revenue

Increase in Unearned Revenue = $750 - $600 = $150

Cash received from revenue = $3,600 - $150 = $3,450

Therefore, the answer is D.

Unearned Revenue Was $600 at the End of February and $750