Unearned Revenue Is a Cash Payment Which Has Been Received

question 71

True/False

Unearned revenue is a cash payment which has been received in advance and it is recorded as an asset of the business.

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Definitions:

Partnership

A legitimate form of commercial enterprise that involves shared management and profit distribution among two or more participants.

Owner

An individual or entity that possesses property, rights, or interests in an asset or item.

Capital Contribution

The funds, property, or other assets provided by owners or partners to a company for use in the business.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency.