Unearned revenue is revenue that:
A) will be collected and earned in the future.
B) the business has collected, but not yet earned.
C) has been collected and earned.
D) the business has earned, but not collected.

Question

Quizplus · Accepted Answer

Unearned revenue refers to revenue that a business has collected from its customers in advance but has not yet earned. It is a liability on the balance sheet until the goods or services have been provided, at which point it can be recognized as revenue.

Unearned Revenue Is Revenue That