When cash is received in advance of being earned,a(n)______ called _________ is recorded.
A) liability; Unearned Revenue
B) asset; Unearned Revenue
C) liability; Accounts Receivable
D) asset; Accounts Receivable

Question

Quizplus · Accepted Answer

When cash is received in advance of being earned, it is recorded as a liability called Unearned Revenue because the company has an obligation to deliver goods or services in the future.

When Cash Is Received in Advance of Being Earned,a(n)______ Called