Identify the account below that is classified as a liability in a company's chart of accounts:
A) Cash
B) Accounts Receivable
C) Supplies
D) Salaries Expense
E) Unearned Revenue

Question

Quizplus · Accepted Answer

Unearned Revenue is a liability because it represents payments received from customers for goods or services that have not yet been provided. As such, the company has an obligation to perform in order to fulfill the contract and earn the revenue.

Identify the Account Below That Is Classified as a Liability