Question

Where would unearned revenue most likely appear in a set of financial statement?

Answer 1

Answer:

Unearned revenue is included on the balance sheet. Because it is money you possess but have not yet earned, it's considered a liability and is included in the current liability section of the balance sheet.

Answer 2

Answer:

Unearned revenue will appear in the liability side of the balance sheet.

Step-by-step explanation:

• Unearned revenue is the revenue which has been received by the business, but the product or services has not been delivered.

• It is a "prepayment" for the goods and services that the business will give in future.

• It is considered as a liability for the business.

• The financial obligations of a business is known as liabilities for the business. It is the money that the business owes.

• Liability appears on the liability side of the balance sheet.

Hence, Unearned revenue will appear in the liability side of the balance sheet.

An example of unearned revenue is Rent received in advance.

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