Unearned revenue is classified as
A) an asset account.
B) a revenue account.
C) a contra-revenue account.
D) a liability account.

Question

Quizplus · Accepted Answer

Unearned revenue is a liability account because it represents the obligation of the company to provide goods or services to customers in the future. It is money that has been received in advance of delivering the product or service, and until it is earned, it cannot be recognized as revenue on the company's financial statements.

Unearned Revenue Is Classified as