Cash received before services are performed may be recorded as a debit to a Cash account and a credit to a liability account is calleda. an unearned revenueb. an accrued revenue. c. accounts payabled. None of these answer choices are correct. e. an unrecorded revenue

Question

Kamari Montoya

Business

18 April, 23:07

Cash received before services are performed may be recorded as a debit to a Cash account and a credit to a liability account is calleda. an unearned revenueb. an accrued revenue. c. accounts payabled. None of these answer choices are correct. e. an unrecorded revenue

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Answers (1)

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Dalia Hudson · Answer 1

Answer: An unearned revenue

Explanation: When any individual or entity receives money from customers for such service which has not been performed yet, then such income is termed as unearned revenue.

Unearned revenue is considered to be the liability of the recipient and and asset for the payee.

So from the above explanation we can conclude that right option is unearned revenue.