Question

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

Review Later

In the Income Statement after Operating Profit

In the Income Statement before Gross Profit

In the Balance Sheet as an asset

In the Balance Sheet as a liability

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Answer 1

Answer:

Unearned revenue is usually disclosed as a current liability on a company's balance sheet. This changes if advance payments are made for services or goods due to be provided 12 months or more after the payment date. In such cases, the unearned revenue will appear as a long-term liability on the balance sheet.