In the case of unearned revenue, the cash is received first, and the revenue is earned later.

Name: In the case of unearned revenue, the cash is received first, and the revenue is earned later.
Brand: Quizplus
Rating: 4.9 (30 reviews)

Question

Quizplus · Accepted Answer

Unearned revenue is a liability for the company because they have received the cash for a product or service that they have not yet delivered or earned revenue from. The revenue will be earned and recognized later when the product or service is delivered or completed.

In the Case of Unearned Revenue, the Cash Is Received