Which of the following is a liability?
A) sales returns and allowances
B) general reserve
C) allowance for doubtful debts
D) unearned revenue.

Question

Quizplus · Accepted Answer

Unearned revenue is a liability because it represents a payment received from a customer for goods or services that have not yet been provided. The company has an obligation to fulfill the goods or services, so the payment is considered a liability until it is earned. Sales returns and allowances, general reserve, and allowance for doubtful debts are all examples of contra accounts that reduce assets or increase expenses, but they are not liabilities.

Which of the Following Is a Liability