6) Unearned revenue is classified as a. an asset account. b. a revenue account. c. a contra-revenue account. d. a...

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Accounting

6) Unearned revenueis classified as
a. an asset account.
b.   a revenue account.
c. a contra-revenue account.
d.   a liabilityaccount.
7) Which of thefollowing would not result in unearnedrevenue?
a. Rent collected in advance fromtenants
b.   Services performed onaccount
c. Sale of season tickets to footballgames
d.   Sale of two-yearmagazine subscriptions
8) If an adjustingentry is not made for an accrued expense,
a. expenses will be overstated.
b.   liabilities will beunderstated.
c. net income will be understated.
d.   owner’s equity will beunderstated.

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Question 6 The correct answer Option d Unearned Revenue is classified as a liability account It is because of this that it is shown under Current Liabilities heading on Balance Sheet This account has a credit balance Unearned revenue is not an asset See Answer

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