Question

A magazine publisher has an account called "Unearned Subscription Revenue." The transaction that causes the balance of this account to decrease is: Multiple Choice magazines are mailed to subscribers. magazines are printed for the publisher. subscriptions are sold to new subscribers. cash is received from new subscribers.

Answer 1

The correct option is (A), magazines are mailed to customers

Step-by-step explanation:

Unearned revenue refers to the income earned in advance against which service has not been rendered yet. Fees earned in terms of subscription is often considered as unearned revenue as subscription fees is received in advance before magazines are dispatched or mailed to customers.

Unearned subscription revenue account decreases as and when magazines are mailed to the customers as service is rendered against the revenue earned in advance.