Where does Unearned subscription revenue appear on the balance sheet?
A) Under Long-term investments
B) Under Current liabilities or Long-term liabilities
C) Under Current assets or Long-term investments
D) Under Long-term assets

Question

Quizplus · Accepted Answer

Unearned subscription revenue represents advance payments made by customers for goods or services yet to be provided. Therefore, it is considered a liability and appears on the balance sheet under either current liabilities or long-term liabilities, depending on the timeline for when the goods or services will be provided.

Where Does Unearned Subscription Revenue Appear on the Balance Sheet