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On a classified statement of financial position, where is unearned revenue (for example, unearned fees) most appropriately reported?

AAs a current liability
BAs a non-current asset
CAs part of stockholders' equity
DAs operating revenue on the income statement
Answer & Solution
Correct answer: A. As a current liability
1. Unearned revenue is cash received before the goods or services are delivered. 2. It represents an obligation to perform, settled within the coming year, so it is a liability. 3. On a classified statement of financial position it appears among current liabilities (e.g., Unearned fees). 4. It is not yet earned, so it cannot be revenue (option D) until performance occurs. _Source: Jonick, Principles of Financial Accounting (CC BY-SA 4.0), §5.4 "Classified Balance Sheet", p.238_
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