Unearned revenues should be classified as Other income and expense on the income statement.

Name: Unearned revenues should be classified as Other income and expense on the income statement.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Unearned revenues should be classified as liabilities on the balance sheet until they are recognized as revenue. When they are recognized as revenue, they should be classified as revenue on the income statement, not Other income and expense.

Unearned Revenues Should Be Classified as Other Income and Expense