The adjusting entry to recognize work completed on unearned revenue involves which of the following?
A. An increase in assets and a decrease in liabilities
B. An increase in liabilities and a decrease in equity
C.A decrease in liabilities and an increase in equity
D. A decrease in assets and a decrease in liabilities
Answer:C
The adjusting entry to recognize work completed on unearned revenue involves which of the following?
A. An increase in assets and a decrease in liabilities B. An increase in liabilities and a decrease in equity C.A decrease in liabilities and an increase in equity D. A decrease in assets and a decrease in liabilities