Unearned Revenues Are

question 23

Multiple Choice

Unearned revenues are:

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

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Definitions:

Material Price Variance

The difference between the actual cost of materials purchased and the expected (or standard) cost, indicating how efficiently materials are being purchased.

Material Usage Variance

The difference between the actual amount of materials used in production and the standard amount expected, valued at the standard cost.

Quality Of Materials

The measure of suitability of the materials used in production, affecting the durability and functionality of the final product.

Labour Rate Variance

The difference between the actual cost of direct labor and the estimated cost based on the standard labor rate.