Asked by Michelle Mazur on Apr 26, 2024

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The account type and normal balance of Unearned Revenue is

A) revenue, credit
B) expense, debit
C) liability, credit
D) asset, debit

Unearned Revenue

Income received by a company for goods or services that have yet to be delivered or performed, also known as deferred revenue.

Normal Balance

The side (debit or credit) of an account that is typically increased. For example, assets and expenses usually have a debit normal balance, while liabilities, equity, and revenue have a credit normal balance.

  • Identify the differences between assets, liabilities, and owners' equity when making adjusting entries.
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LS
Lindsay SidellApr 29, 2024
Final Answer :
C
Explanation :
Unearned Revenue is a liability account which represents the advance payment received by a company for goods or services that are still to be provided in the future. The normal balance of a liability account is credit.