Unearned revenue is reported on the balance sheet as:
A) a revenue account.
B) a current liability.
C) an unearned liability.
D) a long-term debt.

Question

Quizplus · Accepted Answer

Unearned revenue is money that a company has received but has not yet earned. It is considered a current liability because the company has an obligation to provide goods or services in the future. As soon as the goods or services are provided, the unearned revenue is recognized as revenue on the income statement.

Unearned Revenue Is Reported on the Balance Sheet As