Which of the following situations may give rise to unearned revenue?Select one:a. Providing trade credit to customers.O b. Providing manufacturer warranties.c. Selling magazine subscriptions.O d. Selling inventory.

Unearned revenue is income received by a person or business in exchange for a service or product…

Answered: the following situations may give rise…

the following situations may give rise to unearned r ne: Providing trade credit to customers. Providing manufacturer warranties. Selling magazine subscriptions.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter11: Auditing Inventory, Goods And Services, And Accounts Payable: The Acquisition And Payment Cycle

Section: Chapter Questions

Problem 3CYBK

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Question

Which of the following situations may give rise to unearned revenue?
Select one:
a. Providing trade credit to customers.
O b. Providing manufacturer warranties.
c. Selling magazine subscriptions.
O d. Selling inventory.

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