Unearned revenues are: A. received and recorded as liabilities before they are recognized. B. recognized and recorded as liabilities before they are received. C. recognized but not yet received or recorded. D. recognized and already received and recorded.

Question

Teagan Archer

Business

5 November, 09:18

Unearned revenues are: A. received and recorded as liabilities before they are recognized. B. recognized and recorded as liabilities before they are received. C. recognized but not yet received or recorded. D. recognized and already received and recorded.

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Answers (2)

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Jamari Nash · Answer 1

A. received and recorded as liabilities before they are recognized

Explanation:

Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It is also know as an advance payment, it appears as a current liability on the balance sheet as the goods or services has not been rendered to the customer yet and can only become a revenue once the goods and services are rendered.

Maryjane Ashley · Answer 2

Answer: A. received and recorded as liabilities before they are recognized.

Explanation: Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It is recorded on a company's balance sheet as a liability because it represents a debt owed to the customer. Once the product or service is delivered, unearned revenue becomes revenue on the income statement.