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Manoj Kumar
on Oct 16, 2024

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Unearned revenues are classified as liabilities.

Unearned Revenues

Money received by a company for goods or services that have yet to be delivered or performed, considered a liability until earned.

Liabilities

Liabilities represent debts or financial obligations that a company owes to others, which must be settled over time through the transfer of economic benefits.

  • Comprehend the principle of unearned revenue being classified as a liability and the method of its accounting processing.
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Rahul MdrskOct 16, 2024
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