An unearned revenue is an example of a(an)
A) Deferred credit.
B) Accrued liability.
C) Customer billing that takes place before a job is finished.
D) Accounts receivable.

Question

Quizplus · Accepted Answer

An unearned revenue is a type of deferred credit, meaning the company has received payment for goods or services that have not yet been provided or performed. As the company fulfills its obligations and delivers the goods or services, the unearned revenue is gradually recognized as revenue on the income statement.

An Unearned Revenue Is an Example of A(an)