Recording the collection of three months of advance rent from a client in an unearned account would be an example of a(n):
A)deferred expense.
B)deferred revenue.
C)accrued expense.
D)accrued revenue.

Question

Quizplus · Accepted Answer

Recording the collection of advance rent in an unearned account is an example of deferred revenue because revenue has been received in advance but has not yet been earned.

Recording the Collection of Three Months of Advance Rent from a Client