Revenues that are collected before services or goods are delivered are called unearned revenue under accrual accounting.

Name: Revenues that are collected before services or goods are delivered are called unearned revenue under accrual accounting.
Brand: Quizplus
Rating: 4.7 (41 reviews)

Question

Quizplus · Accepted Answer

This is correct. Unearned revenue is a liability account that represents money received in advance from customers for services or goods that have not yet been delivered. It is recognized as revenue only when the services or goods are provided.

Revenues That Are Collected Before Services or Goods Are Delivered