What happens to the accounting equation when the adjustment is recorded to recognize earned revenue previously recorded as unearned revenue?

Question

Quizplus · Accepted Answer

When earned revenue previously recorded as unearned revenue is recognized, it means that the company has fulfilled its obligation to the customer and can now count it as revenue. This will result in a decrease in the unearned revenue liability (which is a type of liability) and an increase in revenue (which is a component of stockholders' equity). Therefore, the accounting equation will be affected in the following way: 
Liabilities decrease (unearned revenue) and Stockholders' equity increases (revenue earned).

What Happens to the Accounting Equation When the Adjustment Is