Asked by Stephanie Skinner on Jul 14, 2024
Verified
If there is a balance in the unearned subscriptions account after adjusting entries are made, it represents a (n)
A) deferral
B) accrual
C) dividend
D) revenue
Unearned Subscriptions
A liability account that represents payments received by a company for subscriptions that have not yet been earned because the service has not been provided.
Deferral
An accounting principle that postpones the recognition of an expense or revenue to a future accounting period.
Accrual
The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.
- Acquire an understanding of accrual and deferral concepts pertinent to accounting.
- Make distinctions between prepaid expenses and unearned revenues.
Verified Answer
Learning Objectives
- Acquire an understanding of accrual and deferral concepts pertinent to accounting.
- Make distinctions between prepaid expenses and unearned revenues.
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