Unearned Revenues Are Generally

question 228

Multiple Choice

Unearned revenues are generally:

• A) Increases to owners' capital.
• B) Recorded as an asset in the accounting records.
• C) Liabilities created when a customer pays in advance for products or services before the revenue is earned.
• D) Revenues that have been earned but not yet collected in cash.
• E) Revenues that have been earned and received in cash.

---

Definitions:

Production Process

The method or series of actions taken to manufacture a product, from the acquisition of raw materials to the final product.

Present Value

Today's value of a future money amount or sequence of cash flows, determined by a certain rate of return.

Initial Investment

The initial amount of money invested in a project or venture.