Unearned Revenues Refer to A(n)

question 62

Multiple Choice

Unearned revenues refer to a(n) :

• A)Asset that will be used over time.
• B)Expense incurred because a customer has paid in advance.
• C)Liability that is settled in the future when a company delivers its products or services.
• D)Increase in assets as a result of delivering products or services to a customer.
• E)Decrease in an asset.

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Definitions:

Sales

The activities involved in selling goods or services in return for money or other compensation.

Beginning Fixed Assets

The value of a company's long-term tangible assets at the start of a fiscal period.

Fixed Asset Turnover

A efficiency ratio that indicates how well a company uses its fixed assets to generate sales.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.