Asked Jan 9, 2020

How does unearned revenue arise? Why can it be classified
properly as a current liability? Give several examples
of business activities that result in unearned revenues.


Expert Answer

Step 1

Unearned revenue: The revenue which is received in advance by the company for the services or goods to be delivered in future, is referred to as unearned revenue. Since the revenue is received for the services n...

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