Unearned rent, representing rent for the next six months' occupancy, would be reported on the landlord's balance sheet as a(n)
A) asset
B) liability
C) equity
D) revenue

Question

Quizplus · Accepted Answer

Unearned rent represents a liability for the landlord since it is money that has been received but has not yet been earned. It will be recognized as revenue gradually over the next six months as the tenants occupy the property, at which point it will no longer be a liability.

Unearned Rent, Representing Rent for the Next Six Months' Occupancy