Which of the following liabilities is created when a company receives cash for services to be provided in the future?
A) Unearned Revenue
B) Accrued Liability
C) Accounts Payable
D) Estimated Warranty Payable

Question

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Unearned revenue is a liability that arises when a company receives cash in advance for services or goods to be provided at a later date. It represents a company's obligation to deliver on goods or services that it has received payment for. Accrued liabilities arise when a company has incurred an expense, but has not yet paid for it. Accounts payable is a liability that arises when a company purchases goods or services on credit from a supplier or vendor. Estimated warranty payable is a liability that arises when a company sells a product that comes with a warranty and estimates the costs that it will incur to satisfy warranty claims in the future.

Which of the Following Liabilities Is Created When a Company