Unearned revenue is an example of a liability that is settled by the provision of goods or services.

Name: Unearned revenue is an example of a liability that is settled by the provision of goods or services.
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Unearned revenue, also known as deferred revenue, is a liability because a customer has paid in advance for goods or services that have not yet been provided. This liability is settled by providing the goods or services agreed upon, which converts the liability into revenue earned.

Unearned Revenue Is an Example of a Liability That Is