The Unearned Revenues account is an example of a liability.

Name: The Unearned Revenues account is an example of a liability.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Unearned Revenues represents cash received in advance of providing goods or services to a customer. As the goods or services are provided, the amount of unearned revenues is decreased and recognized as revenue on the income statement. Therefore, it is a liability until the goods or services are provided.

The Unearned Revenues Account Is an Example of a Liability