Question

A credit is used to record a decrease in which of the following accounts?

a) Accounts payable
b) Services revenue
c) Unearned revenue
d) Notes payable
e) Accounts receivable

Answer 1

A credit is used to record a decrease in unearned revenue.

Step-by-step explanation:

A credit is used to record a decrease in unearned revenue. Unearned revenue is a liability account that represents payments received in advance for goods or services that have not yet been delivered. When the goods or services are provided, the unearned revenue is recognized as revenue and the liability is decreased by a credit entry.