Identify the account below that is classified as a liability in a company's chart of accounts:
A)Cash
B)Unearned Revenue
C)Salaries Expense
D)Accounts Receivable
E)Supplies

Question

Quizplus · Accepted Answer

Unearned revenue is classified as a liability because it represents the money earned but not yet delivered or fulfilled to the customer. This is typically seen in businesses such as subscription-based services where customers pay in advance for future services.

Identify the Account Below That Is Classified as a Liability