Unearned revenue is recorded when ________.
A) revenue will be both collected and earned in the future
B) the business has collected cash, but not yet earned the revenue
C) revenue has been collected and earned during the same accounting period
D) the business has earned, but not collected, cash for the revenue

Question

Quizplus · Accepted Answer

Unearned revenue is recorded when the business has collected cash, but not yet earned the revenue. This means that the business has received payment from a customer for goods or services that haven't been delivered or provided yet. The revenue is considered unearned until the business fulfills its obligations to the customer and earns the revenue.

Unearned Revenue Is Recorded When ________