Funds received before the delivery of goods and services would be shown as
A) unearned revenue on the statement of earnings.
B) unearned revenue on the balance sheet.
C) a credit to cash.
D) sales or service revenue on the statement of earnings.

Question

Quizplus · Accepted Answer

Unearned revenue is recorded on the balance sheet because it represents a liability, indicating that the company has received payment but has not yet delivered the goods or services.

Funds Received Before the Delivery of Goods and Services Would