Unearned revenues are assets treated as liabilities,as these are received by a business for services to be performed at a future date.

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Unearned revenues represent payments received by a business in advance for services that will be provided in the future. These funds are considered a liability because the company has an obligation to provide the agreed-upon services. As the services are performed, the liability decreases, and revenue is recognized.

Unearned Revenues Are Assets Treated as Liabilities,as These Are Received