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Q1TI_5

Expert-verified
Horngren'S Financial And Managerial Accounting
Found in: Page 191

Short Answer

For each account listed, identify the category in which it would appear on a classified balance sheet.

5. Unearned Revenue

Unearned Revenue are classified as current liabilities.

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Step by Step Solution

Step-by-Step-Solution

Step 1: Explanation on Current Liabilities

Current liabilities are the obligations of the entity which are paid or cleared within a year or within a operating cycle.

Step 2: Explanation on Unearned Revenue

Unearned revenue refers to the advance income received by the business, in which services or goods will be provided in future. As the goods or service will be provided in future, hence it is treated as current liabilities.

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