Final answer:
Unearned revenue at the end of the accounting period remains a liability until the service or product is delivered. Upon delivery, it is then recorded as revenue on the income statement.
Step-by-step explanation:
The status of unearned revenue at the end of the accounting period on December 31st is that it remains as unearned revenue if the service or product associated with it has not yet been delivered or performed. The correct answer is: 4) Unearned revenue has been recorded as a liability. In accounting terms, unearned revenue represents money received by a company for goods or services that are to be provided in the future. As such, it is considered a liability because it represents an obligation of the company to deliver the product or service at a future date. When those goods or services are finally delivered or performed, the unearned revenue is then recognized as revenue on the income statement.