Question

Which of the following is a liability created when a company receives cash for services to...

Which of the following is a liability created when a company receives cash for services to be provided in the future?

Your Answer:
  
Unearned revenue

  
Accrued liability

  
Service revenue

  
Estimated warranty payable

Business   Accounting   
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Homework Answers

Answer #1

Answer : Unearned revenue

Explanation:

Unearned revenue: it is a liability created when a company receives cash for services to be provided in the future  
Accrued liability : It is a liability created when company owed for the expenses. It would be paid in future.
Service revenue: It is a revenue created when services performed for cash or on account.  
Estimated warranty payable: It is a liability created when there is a warranty liability expected to be incurred.

Thus,  

Unearned revenue is a liability created when a company receives cash for services to be provided in the future?

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