Asked by Nimah Siddiqui on Jul 16, 2024
Verified
The type of account and normal balance of Unearned Consulting Fees would be
A) revenue, credit
B) expense, debit
C) liability, credit
D) liability, debit
Unearned Consulting Fees
Money received for consulting services that have not yet been provided, representing a liability until the service is performed.
Normal Balance
The side (debit or credit) of an account that is typically increased, reflecting a fundamental principle in accounting.
Liability
A company's legal financial debts or obligations that arise during the course of business operations.
- Attain a comprehension of the roles of assets, liabilities, and equity in the composition of the balance sheet.
- Pinpoint and arrange diverse kinds of accounts (assets, liabilities, revenues, expenses) and their consequences on financial statements.
- Understand how unearned revenues are recognized and adjusted in financial statements.
Verified Answer
Learning Objectives
- Attain a comprehension of the roles of assets, liabilities, and equity in the composition of the balance sheet.
- Pinpoint and arrange diverse kinds of accounts (assets, liabilities, revenues, expenses) and their consequences on financial statements.
- Understand how unearned revenues are recognized and adjusted in financial statements.
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