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Unearned revenues are: Multiple Choice Revenues that have been earned and received in cash. Revenues that have been earned but not yet collected in cash. Liabilities recorded when customers pay in advance for products or services. Recorded as an asset in the accounting records. Increases to equity.

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The correct statement about unearned revenues is:

  • Liabilities recorded when customers pay in advance for products or services.

What are unearned revenues?

They are obligations to provide services or deliver goods in the future for the receipt of an advance payment.

Characteristics of unearned revenues

  • Revenue is received before they actually provide a good or service.

  • It is listed as a liability until the good or service is produced, the income is transferred from unearned revenue to the earned income account.

Therefore, we can conclude that unearned revenues are received before the company provides the goods or services and are classified first as a current liability on the balance sheet.

Learn more about unearned revenues here: https://brainly.com/question/8035839

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