An entity receives $1,000 for a 12-month service contract. If 3 months have passed, the unearned rev

date：2025-12-28 15:17:24 author：admin browse： time View comments Add Collection

An entity receives $1,000 for a 12-month service contract. If 3 months have passed, the unearned revenue is

An entity receives $1,000 for a 12-month service contract. If 3 months have passed, the unearned revenue is:

A. $250

B. $750

C. $1,000

D. $0

Answer: B

Explanation: Unearned revenue = $1,000 × (9/12) = $750 (9 months remaining).