Unearned revenue typically arises because
A) cash is received as security that will be paid back in the future.
B) cash is received from customers prior to the rendering of services or delivery of products.
C) a company temporarily requires cash for operations.
D) merchandise is sold to customers prior to payment.

Question

Quizplus · Accepted Answer

Unearned revenue occurs when a company receives cash from customers before providing the services or delivering the products, creating a liability until the obligation is fulfilled.

Unearned Revenue Typically Arises Because