This liability account is credited when cash is received for goods and/or services in advance of being earned
A) Pre-earned Revenues
B) Unearned Revenues
C) Advanced Revenues
D) Prepaid Revenues

Question

Quizplus · Accepted Answer

Unearned Revenues is a liability account that is credited when cash is received for goods and/or services in advance of being earned. It is also known as deferred revenue or customer deposits. The amount is recognized as revenue only when the goods or services are delivered or performed.

This Liability Account Is Credited When Cash Is Received for Goods