Time Warner is a publishing and communications company,specializing in magazines,cable television operation,television program development,and other telecommunication services.Its financial statements show $37,666 in an account called Unearned Revenue,which represents amounts that customers have paid in advance of receiving magazines,cable television,and internet services.What type of account is this and on what statement is it reported?
A) Asset; Balance Sheet
B) Liability; Balance Sheet
C) Revenue; Balance Sheet
D) Revenue; Income Statement

Question

Quizplus · Accepted Answer

Unearned Revenue represents amounts that customers have paid in advance of receiving goods or services, so it is a liability account. It is reported on the balance sheet, which shows the company's financial position at a specific point in time.

Time Warner Is a Publishing and Communications Company,specializing in Magazines,cable