Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Discover solutions to your questions from experienced professionals across multiple fields on our comprehensive Q&A platform. Our platform offers a seamless experience for finding reliable answers from a network of knowledgeable professionals.

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

Sagot :

Answer:

Liability that is settled in the future when a company delivers its products or services.

Explanation:

Unearned revenue is money received for a service that is yet to be provided or a product that is yet to be delivered.

Unearned revenue is recorded as a liability on the balance sheet. The reason for this is because unearned revenue represents debts owed.

Once the service is rendered, the unearned revenue is recorded on the income statement as a revenue.

Example of unearned revenue : a company offers a one year subscription to consumers. The company is earning revenue for services that is yet to be rendered

Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. We appreciate your time. Please come back anytime for the latest information and answers to your questions. Keep exploring Westonci.ca for more insightful answers to your questions. We're here to help.