Revenue collected but not yet earned is recorded as:
A)Unearned Revenue.
B)Accrued Revenue.
C)Service Revenue.
D)Uncollected Revenue.

Question

Quizplus · Accepted Answer

Revenue collected but not yet earned is referred to as unearned revenue. This is because the revenue has been received in advance of the goods or services being provided. It is a liability on the balance sheet until the goods or services are delivered, and then it is recognized as revenue. Accrued revenue, on the other hand, refers to revenue that has been earned but not yet received.

Revenue Collected but Not Yet Earned Is Recorded As