Unearned Revenue Is a Liability and Should Be Reported on the Income

question 97

True/False

Unearned revenue is a liability and should be reported on the income statement.

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Definitions:

Month of Sale

The specific month in which a sale transaction was completed or recognized for accounting or reporting purposes.

Collections

Collections refer to the process of pursuing payments of debts owed by individuals or businesses, often conducted by dedicated departments or external agencies.

Sales

The total revenue a company generates from selling goods or services over a specific time period.

Accounts Receivable Period

The average amount of time it takes for a company to receive payments owed by its customers for goods or services provided.