Unearned revenues are current liabilities until they are earned.

Name: Unearned revenues are current liabilities until they are earned.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Unearned revenues represent advance payments received for goods or services that are yet to be provided, making them a liability. This liability remains until the product or service is delivered or performed, at which point the revenue is recognized as earned and moves from a liability to revenue on the income statement.

Unearned Revenues Are Current Liabilities Until They Are Earned