Unearned Service Revenue Is Classified as a Liability on the Balance

question 52

True/False

Unearned Service Revenue is classified as a liability on the balance sheet.

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Definitions:

Capital Expenditures

Expenditures that increase the company’s investment in productive facilities.

Cash Receipts

The collection of cash, typically from customers as revenue or from other sources, recorded by a business.

Credit Sales

Sales made on credit, where the payment is received after the goods or services are delivered.

Budgeted Balance Sheet

A financial statement that projects the balances of assets, liabilities, and equity based on expected future transactions.