Realistic Rentals collected $10,000 in payment of advance rent for 6 months. This an example of ________.
A) an accrued receivable
B) a prepaid expense
C) an unearned revenue
D) an accrued liability

Question

Quizplus · Accepted Answer

The $10,000 collected for advance rent represents unearned revenue because the service (rental period) has not yet been provided. The company has an obligation to provide the rental service in the future.

Realistic Rentals Collected $10,000 in Payment of Advance Rent for 6