Question

Unearned revenue may also be called:

a) Net income.
b) Deferred revenue.
c) Unexpired revenue.
d) Services rendered.

Answer 1

Unearned revenue is correctly referred to as deferred revenue, representing money received for services or goods not yet provided and is a liability on the balance sheet.

Step-by-step explanation:

Unearned revenue may also be called deferred revenue. Unearned revenue is money received by an entity for services or goods yet to be provided. It is considered a liability on the balance sheet because it represents an obligation to deliver the product or service in the future. Other terms such as unexpired revenue or services rendered do not accurately describe unearned revenue in an accounting context.