Asked by Vaughn Lawrence on May 01, 2024
Verified
Received payment covering a six-month magazine subscription.
A) Prepaid expense
B) Accrued expense
C) Unearned revenue
D) Accrued revenue
E) None of these choices
Unearned Revenue
Money received by a company for goods or services that have not yet been provided, recorded as a liability until the goods or services are delivered.
Magazine Subscription
A payment made in exchange for receiving regular copies of a magazine, journal, or other periodical publication.
Payment
The transfer of money, goods, or services in exchange for a product, service, or to fulfill a legal obligation.
- Classify and identify distinct account types aligned with business transactions.
Verified Answer
MN
Mahnoor NadeemMay 03, 2024
Final Answer :
C
Explanation :
Unearned revenue, because the payment received represents revenue that has not yet been earned by providing the magazine subscription for the six-month period.
Learning Objectives
- Classify and identify distinct account types aligned with business transactions.