Question

13. Unearned revenue has: A) been earned but the cash has not been received. B) not...

13. Unearned revenue has:

A) been earned but the cash has not been received.

B) not been earned nor has the cash been received.

C) been earned and the cash has been received.

D) not been earned but the cash has been received.

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Homework Answers

Answer #1

Unearned revenue has not been earned but the cash has been received.

Correct option is (D)

Unearned revenue is the revenue received in advance from customer fro which goods will be supplied or services will be provided in future. Hence, unearned revenue is a current liability. After delivering the goods or providing the services, unearned revenue becomes revenue earned.

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