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:

Return On Investment

A measure of the profitability of an investment, calculating the ratio of net profit to the initial cost of investment.

Dividing

In financial contexts, this can refer to allocating or apportioning financial resources or profits among groups, such as dividends to shareholders.

Responsibility Accounting

A financial tracking system that gathers, compiles, and presents financial data relevant to the duties of specific managers.

Controllable Costs

Expenses that can be directly influenced or managed by a specific department or level of management.