"Unearned" accounts are liabilities that must be fulfilled.

Name: "Unearned" accounts are liabilities that must be fulfilled.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Unearned accounts refer to money received in advance for goods or services that have not yet been provided. These accounts are considered liabilities because the company still owes the customer the goods or services that they have paid for. Therefore, unearned accounts must be fulfilled, making them a liability for the company.

"Unearned" Accounts Are Liabilities That Must Be Fulfilled