Unearned revenue defined as a liability
Steve Chang received $500 in advance for tutoring fees when he agreed to help Jon Seng with his introductory accounting course. Upon receiving the cash, Steve mentioned that he would have to record the transaction as a liability on his books. Seng asked, “Why a liability? You don’t owe me any money, do you?”
Required
Respond to Seng’s question regarding Chang’s liability.
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