Which of the following is a liability created when a company receives cash for services to be provided in the future?
A) Unearned revenue
B) Accrued liability
C) Service revenue
D) Estimated warranty payable

Question

Quizplus · Accepted Answer

Unearned revenue is a liability created when a company receives cash for services to be provided in the future, as the company has an obligation to provide the services in the future and the cash received is not yet earned as revenue. Accrued liability is a liability that arises from expenses that have been incurred but not yet paid or recorded. Service revenue is income earned by providing services to customers. Estimated warranty payable is a liability that arises when a company expects to incur costs in the future for warranties on products sold.

Which of the Following Is a Liability Created When a Company