Asked by
Manoj Kumar
on Oct 16, 2024Verified
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.
Verified Answer
RM
Learning Objectives
- Comprehend the principle of unearned revenue being classified as a liability and the method of its accounting processing.