When cash is debited for rents that are collected but are not yet earned, the amount credited should be

Name: When cash is debited for rents that are collected but are not yet earned, the amount credited should be
Brand: Quizplus
Rating: 4.9 (51 reviews)

Question

Quizplus · Accepted Answer

Rents that are collected but are not yet earned represent unearned revenue and should be presented as a liability until earned. Therefore, the amount credited should be presented as a liability until it is earned, at which point it will be recognized as revenue.

When Cash Is Debited for Rents That Are Collected but Are