Match the type of account (a through e) with the business transactions that follow.
-Received six months of rental payments from a tenant.
A)Prepaid expense
B)Accrued expense
C)Unearned revenue
D)Accrued revenue
E)None of these choices

Question

Quizplus · Accepted Answer

Receiving rental payments in advance is considered unearned revenue because the service (providing rental space) has not yet been provided for the entire period paid for. The company owes the service for the future months.

Match the Type of Account (A Through E) with the Business