Unearned Revenue Is Classified as A(n)________ Account

question 115

Multiple Choice

Unearned Revenue is classified as a(n) ________ account.

• A) liability
• B) asset
• C) revenue
• D) equity

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product.

Continuous Process

A production method used to manufacture, produce, or process materials without interruption.

Conversion Cost

The combined costs of direct labor and manufacturing overhead involved in transforming materials into finished goods.

Equivalent Unit

In cost accounting, it represents a measure that converts the work done on partial units of output into the amount of completed units that could have been produced with that amount of work.