Before adjusting entries, unearned revenues are:
A)received and recorded as liabilities before they are recognized as revenue.
B)recognized as revenue and recorded as liabilities before they are received.
C)recognized as revenue but not yet received or recorded.
D)recognized as revenue and already received and recorded.

Question

Quizplus · Accepted Answer

Unearned revenues are payments received before the services are performed or goods are delivered, thus they are initially recorded as liabilities.

Before Adjusting Entries, Unearned Revenues Are