The name unearned revenue implies that this type of account is a revenue account and belongs on
Question:
The name "unearned revenue" implies that this type of account is a revenue account and belongs on an income statement. However, these accounts actually appear on the statement of financial position as liabilities. Explain (a) why unearned revenue items are liabilities, and (b) why they require adjustment at the end of each period.
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a Unearned revenue arises when cash is received for goods or services t...View the full answer
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Related Book For 
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118644942
6th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
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