If an apartment leasing company receives the rent for January 2016 from a tenant in December 2015,this will be reported by the leasing company as:
A) revenue in 2015.
B) an expense in 2015.
C) a liability in 2015.
D) stockholders' equity in 2015.

Question

Quizplus · Accepted Answer

The rent received in December 2015 for January 2016 is considered unearned revenue, which is a liability until the service (use of the apartment) is provided in January 2016.

If an Apartment Leasing Company Receives the Rent for January