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madam [21]
3 years ago
7

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.
Business
1 answer:
Leya [2.2K]3 years ago
7 0

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

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