The adjusting entry required when amounts previously recorded as unearned revenues are earned includes:
A)A debit to a liability.
B)A debit to an asset.
C)A credit to a liability.
D)A credit to an asset.

Question

Quizplus · Accepted Answer

When unearned revenues are earned, the liability account (Unearned Revenue) is debited to decrease it, and a revenue account is credited to recognize the earned revenue.

The Adjusting Entry Required When Amounts Previously Recorded as Unearned