Revenues received in advance is classified as an:
A) asset account.
B) revenue account.
C) contra revenue account.
D) liability account.

Name: Revenues received in advance is classified as an: A) asset account. B) revenue account. C) contra revenue account. D) liability account.
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Question

Quizplus · Accepted Answer

When cash is received for services to be provided in the future a liability (revenues received in advance or unearned revenues) is credited. An obligation exists to provide the service or goods in the future.

Revenues Received in Advance Is Classified as An