Asked by ricardo caraballo on Apr 24, 2024
Verified
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 stockholders' equity section
D) income statement as revenue
Unearned Fees
Income received by a business for services yet to be provided or goods to be delivered; recognized as a liability until the service or good is delivered.
Current Liability
A company's financial obligations that are due to be settled within one year or within the normal operating cycle.
- Recognize the differences among immediate assets, durable assets, current debts, and long-term debts presented in the balance sheet.
Verified Answer
EC
Erandy Camacho6 days ago
Final Answer :
B
Explanation :
Unearned fees represent payments collected in advance for services that are yet to be rendered. They are a liability for the business until the services are provided, and therefore they appear on the balance sheet as a current liability.
Learning Objectives
- Recognize the differences among immediate assets, durable assets, current debts, and long-term debts presented in the balance sheet.