Unearned revenues are classified as liabilities on the balance sheet.

Name: Unearned revenues are classified as liabilities on the balance sheet.
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Question

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Unearned revenues are funds received in advance for goods or services that are yet to be provided. Since the company owes the delivery of the goods or services to the customer, these funds are considered a liability on the balance sheet until they are earned.

Unearned Revenues Are Classified as Liabilities on the Balance Sheet