Unearned Revenues Are

question 11

Multiple Choice

Unearned revenues are:

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

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Definitions:

Manufacturer Markup

The difference between the cost to produce a good and its selling price, often added by manufacturers to cover costs and generate profit.

Exclusion of Markup

The practice of not including an additional amount to the cost of goods when pricing them, often to maintain competitive pricing.

Double Marginalization

A pricing issue that occurs when two or more entities in the same supply chain add their markup, leading to higher prices for the end consumer.

Retail Price

The price at which a product is sold to the public, usually after including costs of production, distribution, and a markup for profit.