Unearned Revenues Are

question 28

Multiple Choice

Unearned revenues are

• A)Liabilities created by advance cash payments from customers for products or services.
• B)Revenues that have been earned and received.
• C)Revenues that have been earned but not yet collected.
• D)Recorded as an asset in the accounting records.
• E)Increases to owners' equity.

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Definitions:

Primary Quality

Fundamental or inherent characteristics that determine the value or usefulness of something.

Model of Business Reporting

A framework or standard outlining the principles and requirements for presenting financial and non-financial information about a company's performance and position.

Financial Data

Information about financial transactions, assets, liabilities, revenues, and expenses of a business or individual.

Recognition Principles

The criteria and rules that govern when and how revenue and expenses are recognized in the accounting period they occur.