Which of the following situations typically results in unearned revenues?
A) charging customers a deposit for returnable containers
B) short-term zero-interest notes payable
C) providing manufacturer warranties
D) selling magazine subscriptions

Question

Quizplus · Accepted Answer

Unearned revenues occur when a company receives payment before delivering goods or services. Selling magazine subscriptions involves receiving payment before the magazines are delivered, resulting in unearned revenue.

Which of the Following Situations Typically Results in Unearned Revenues