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Which of the following is true about unearned revenues? A : They are earned and already received and recorded. B : They are received and recorded as liabilities before they are earned. C : They are earned but not yet received or recorded. D : They are earned and recorded as liabilities before they are received.

Answer :

sandlee09

Answer:

B :

Explanation:

Unearned revenues refers to a liability account that records the amount that has been received before actually providing the goods or services for that amount. Therefore these values are received and recorded as liabilities before they are earned. Once the product or service is provided then the account balance is reduced and the revenue is increased, but only when and if the product/service is provided and revenue earned.

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