Brown Ltd has a $22 000 balance in its Unearned service revenue account.Where would this account appear in the financial statements?

Question

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The Unearned service revenue account represents revenue that has been received in advance but has not yet been earned. As such, it is a current liability and should appear in the balance sheet. Option A is incorrect as unearned revenue is not yet earned and cannot be recognized as revenue. Option B is incorrect as unearned revenue is not a current asset. Option D is incorrect as the unearned revenue account must appear in at least one of the financial statements.

Brown Ltd Has a $22 000 Balance in Its Unearned