Unearned revenue is reported in the financial statements as:
A) A liability on the balance sheet.
B) A financing activity on the statement of cash flows.
C) A revenue on the balance sheet.
D) An asset on the balance sheet.
E) An unearned revenue on the income statement.

Question

Quizplus · Accepted Answer

Unearned revenue represents payments received in advance for goods or services that have not been provided yet. As such, it is considered a liability on the balance sheet until the goods or services are delivered, and the revenue can be recognized.

Unearned Revenue Is Reported in the Financial Statements As