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

Question

Quizplus · Accepted Answer

Unearned revenue is money received for goods or services that have not yet been delivered or rendered. Since the revenue has not been earned, it is considered a liability because the company still owes the customer goods or services in exchange for the payment received. Therefore, the correct classification for unearned revenue is as a liability account.

Unearned Revenue Is Classified as