Unearned revenues are
A)Amounts received in advance from customers for future delivery of products or services
B)Not recorded as liabilities
C)The same as accrued revenues
D)Reduce assets
E)All of these

Question

Quizplus · Accepted Answer

Unearned revenues are amounts received in advance from customers for future delivery of products or services. They are recorded as liabilities because the company has an obligation to provide the products or services in the future. This liability will be gradually reduced as revenue is recognized over time. Unearned revenues do not reduce assets and are not the same as accrued revenues.

Unearned Revenues Are