Which of the following is a liability?
A) Unearned revenue
B) Sales revenue
C) Accrued revenue
D) Prepayments

Question

Quizplus · Accepted Answer

Unearned revenue represents payments received in advance for goods or services that have not yet been delivered. It is considered a liability because the company still owes the customer the product or service they paid for.

D is also a liability, as prepayments represent payments made in advance for expenses that have not yet been incurred. However, it is not the best choice because it is more generic and not specific to revenue.

B and C are both forms of revenue and not liabilities. Sales revenue is the amount a company earns from selling goods or services, while accrued revenue represents revenue that has been earned but not yet received.

Which of the Following Is a Liability