Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 21 - No. 45)

Which of the following is true of unearned revenue?

Represents a liability.

Is an asset.

Is revenue that has been earned.

Requires a debit to cash and a credit to unearned revenue.

Unearned revenue is a liability. The cash entry would be correct, but the revenue has not been earned yet.