Any balance in an unearned revenue account is reported as a(n)
A) current liability.
B) long-term debt.
C) revenue.
D) unearned liability.

Question

Quizplus · Accepted Answer

Unearned revenue represents advance payments for goods or services that are yet to be provided by a company. As the company has an obligation to provide such goods or services in the future, the unearned revenue amount is considered a current liability on the balance sheet.

Any Balance in an Unearned Revenue Account Is Reported as A(n)