What kind of account is Unearned Revenue? a. Liability account b. Asset account c. Expense account d.
Question:
What kind of account is Unearned Revenue?
a. Liability account
b. Asset account
c. Expense account
d. Revenue account
Select the best choice from among the possible answers given.
Step by Step Answer:
The type of account Unearned revenue is a Liability account Ex...View the full answer
Financial Accounting
ISBN: 978-0134725987
12th edition
Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.
Related Video
Unearned revenue is money received by an individual or company for a service or product that has yet to be provided or delivered. It can be thought of as a \"prepayment\" for goods or services that a person or company is expected to supply to the purchaser at a later date. As a result of this prepayment, the seller has a liability equal to the revenue earned until the good or service is delivered. This liability is noted under current liabilities, as it is expected to be settled within a year.
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