Unearned Revenues Are

question 33

Multiple Choice

Unearned revenues are:

• A) Amounts received in advance from customers for future delivery of products or services.
• B) The same as accrued revenues.
• C) Reduce assets.
• D) Not recorded as liabilities.
• E) All of these answers are correct.

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Definitions:

Implied Warranty of Fitness

An assurance, typically not expressly stated, that a product will be suitable for its intended purpose.

Particular Purpose

A specific objective or requirement for which goods or services are intended or needed, as expressed in a contract.

Lessee

A person or entity who leases or rents property from another, known as the lessor.

Merchant

A merchant is an individual or company involved in the wholesale or retail trade of goods or services.