PRC-1 · Chapter 3 · Question 78 of 100
How is 'Unearned Commission Income' treated in a trial balance?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) As a liability in the credit column.
Explanation
Unearned income represents money received before the related service is provided. It constitutes an obligation (liability) to perform the service, so it appears in the credit column.
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