Question
Question 24 (1 point) Unearned revenue is considered a liability until the service is performed or the product is delivered. True False
Solution
4
(263 Votes)
Julian
Elite ยท Tutor for 8 years
Answer
True. Unearned revenue represents money received for goods or services that haven't yet been provided. It's a liability because the company has an obligation to deliver those goods or services in the future. Once the obligation is fulfilled, the unearned revenue is recognized as earned revenue.