Unearned revenues refer to a(n):
A) Expense incurred because a customer has paid in advance.
B) Increase in revenues as a result of delivering products or services to a customer.
C) Liability that is settled in the future when a company delivers its products or services.
D) Decrease in an asset.
E) Asset that will be used over time.

Question

Quizplus · Accepted Answer

Unearned revenues refer to payments received from customers for goods or services that have not yet been provided or performed. Therefore, it represents a liability that is settled in the future when a company delivers its products or services.

Unearned Revenues Refer to A(n)