Unearned revenue is a() ( )
A: Asset because the economic benefit will flow into the business
B: Liability because the present obligation arise and the future economic benefit will flow out of the business
C: Revenue because money flow into the business
D: Owners ’equity because you collected the cash in advance
A: Asset because the economic benefit will flow into the business
B: Liability because the present obligation arise and the future economic benefit will flow out of the business
C: Revenue because money flow into the business
D: Owners ’equity because you collected the cash in advance
举一反三
- Unearned Revenue is classified as a(n) ________ account. A: liability B: asset C: revenue D: equity
- 7. The flow of money in and out of the business and providing information about the business’s performance belong to the area of finance management. （ ）
- Money that a business has been paid in advance for a service that will be provided later is called _____. A: accrued revenue B: accrued expense C: unearned revenue D: prepaid expense
- The nature of an asset is best described as A: something with physical form that’s valued at cost in the accounting records. B: an economic resource that’s expected to benefit future operations. C: an economic resource representing cash or the right to receive cash in the future. D: something owned by a business that has a ready market value.
- What type of account is Unearned Revenue (asset, liability, stockholders’ equity, revenue, or expense) and what is its normal balance, respectively?