Debits will increase unearned revenues and revenues.

Unearned Revenues

Money received by a company for services or goods yet to be provided or delivered, recorded as a liability.

Revenues

Inflows of assets or settlements of liabilities from the company's primary operations, typically from sales of goods or services.

Debits

Accounting entries that increase assets or expenses or decrease liabilities, equity, and revenue.

Discern the attributes and typical balances of assorted accounts, namely assets, liabilities, equity, revenue, and expenses.

Verified Answer

Final Answer :

False

Explanation :

Debits decrease unearned revenues (a liability account) and revenues (an income statement account), while credits increase them.

Learning Objectives

Discern the attributes and typical balances of assorted accounts, namely assets, liabilities, equity, revenue, and expenses.