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2. The buyer's prepaid expense is the seller's
Which revenue?

User Micromegas
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1 Answer

4 votes

Answer:

Unearned revenue

Step-by-step explanation:

Unearned revenue is money that a business has received for goods and services that it will deliver later. It is not yet revenue in a business sense because the activity that makes revenue be recognized has not yet happened. Unearned revenue is also known as deferred revenue. It is recorded as a liability by the supplier.

Unearned revenue may arise due to prepayment for goods and services, initial deposits when purchasing property, and subscription fees for magazines, TV, and clubs.

User JMarques
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