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 owner's equity section
D) income statement as revenue

Question

Quizplus · Accepted Answer

Unearned fees are fees that have been collected, but the work or service related to them has not yet been performed or provided. Therefore, they represent a liability to the business until the service is delivered or the work is completed. As a result, unearned fees appear on the balance sheet as a current liability.

Unearned Fees Appear on the