Unearned Revenue Is Revenue That

question 152

Multiple Choice

Unearned revenue is revenue that:

• A)will be collected and earned in the future.
• B)the business has collected in cash, but not yet earned.
• C)has been collected and earned.
• D)the business has earned, but not collected in cash.

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Definitions:

Confirmation Letter

A written communication that verifies and confirms the details of a previous agreement or conversation.

Oral Agreement

An agreement between parties that is made through spoken words and is legally binding though not recorded in written form.

Recover Cost

entails obtaining reimbursement for funds that have been expended for a specific purpose, often through legal or contractual means.

Express Terms

Clearly stated conditions and stipulations in a contract, either orally or in writing, that outline the specific obligations of the parties involved.