Lima Co. has received $12,000 for future subscriptions to The Bean Magazine. Lima should record this amount as a(an) A) long-term investment. B) earned revenue. C) account receivable. D) expense. E) unearned revenue.

Question

Quizplus · Accepted Answer

This amount should be recorded as unearned revenue because it represents money received for services or products that have not yet been delivered or fulfilled.

Lima Co Has Received $12,000 for Future Subscriptions to The Bean