An adjusting entry requiring a debit to Unearned Revenue indicates that the initial transaction was charged to a liability account.

Name: An adjusting entry requiring a debit to Unearned Revenue indicates that the initial transaction was charged to a liability account.
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Question

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When a debit is made to Unearned Revenue, it indicates that a portion of the revenue previously recorded as unearned (a liability) has now been earned, reducing the liability and recognizing the revenue.

An Adjusting Entry Requiring a Debit to Unearned Revenue Indicates