If a company receives the rent for January 2011 from a tenant in December 2010, this will be reported as:
A) revenue in 2010.
B) an expense in 2010.
C) a liability in 2010.
D) stockholders' equity in 2010.

Question

Quizplus · Accepted Answer

The rent received in December 2010 for January 2011 is considered unearned revenue, which is a liability, because the service (use of property) has not yet been provided.

If a Company Receives the Rent for January 2011 from a Tenant