Unearned revenues are generally:
A) Increases to owners' capital.
B) Recorded as an asset in the accounting records.
C) Liabilities created when a customer pays in advance for products or services before the revenue is earned.
D) Revenues that have been earned but not yet collected in cash.
E) Revenues that have been earned and received in cash.

Question

Quizplus · Accepted Answer

Unearned revenues are liabilities because they represent an obligation to deliver goods or services in the future after a customer has paid in advance.

Unearned Revenues Are Generally