Unearned Fees appear on the
A) balance sheet in the current assets section
B) balance sheet as a current liability
C) balance sheet in the stockholders' equity section
D) income statement as revenue

Question

Quizplus · Accepted Answer

Unearned fees represent advance payments received for goods or services that have not yet been provided or delivered. As such, they are classified as a current liability on the balance sheet until the revenue is earned, at which point they are recognized as revenue on the income statement.

Unearned Fees Appear on the