The account type and normal balance of unearned revenue would be

a. expense, debit

b. revenue, credit

c. asset, debit

d. liability, credit

Question

Business

Areli Hull

16 October, 10:44

The account type and normal balance of unearned revenue would be

a. expense, debit

b. revenue, credit

c. asset, debit

d. liability, credit

+2

Answers (1)

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Melina Carson · Answer 1

An unearned revenue is defined as a liability account that reports amounts received in advance of providing goods or services. The account balance is decreased, and revenue account is increased when goods or services are provided. Therefore, by its definition, the account type of unearned revenue is Liability and its normal balance is Credit (Letter D.)

The account type and normal balance of unearned revenue would bea. expense, debitb. revenue, creditc. asset, debitd. liability, credit

The account type and normal balance of unearned revenue would be

a. expense, debit

b. revenue, credit

c. asset, debit

d. liability, credit