Unearned revenue arises from the acceptance of payment in advance for a service to be performed.

Name: Unearned revenue arises from the acceptance of payment in advance for a service to be performed.
Brand: Quizplus
Rating: 4.8 (35 reviews)

Question

Quizplus · Accepted Answer

Unearned revenue is a liability that arises when a company accepts payment from a customer for goods or services that have not yet been delivered or performed. In other words, the revenue has not yet been earned by providing the service, so it is considered unearned.

Unearned Revenue Arises from the Acceptance of Payment in Advance