As the Unearned Rent Revenue is earned:

Question

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Unearned Rent Revenue is a liability account that represents the rent received in advance for a certain period that has not yet been earned by the landlord. As the rent is earned, this liability account needs to be decreased since the landlord no longer owes the rent to the tenant. At the same time, as the rent is earned, the revenue account needs to be increased since the landlord has now earned the rent for that period. Therefore, the best choice is A - the liability account is decreased and the revenue account is increased.

As the Unearned Rent Revenue Is Earned