Unearned revenues are
A) revenues that have been earned and received
B) revenues that have been earned but not yet collected
C) liabilities created by advance cash payments from customers for products or services
D) recorded as an asset in the accounting records
E) increases to owners' equity

Question

Quizplus · Accepted Answer

Unearned revenues are advance cash payments from customers for products or services, creating a liability for the company until the products or services are delivered or performed. This option is the only one that correctly defines unearned revenues.

Unearned Revenues Are