Asked by Vincent Zhang on May 18, 2024
Verified
Unearned revenues that will be earned in a relatively short period of time are listed on the balance sheet as current assets.
Unearned Revenues
Income received by an individual or company for a service or product that has yet to be provided or delivered.
Current Assets
Assets that are expected to be converted into cash, sold, or consumed within one year or a business’s operating cycle, whichever is longer.
Balance Sheet
is a financial statement that provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and shareholders' equity.
- Clarify the variances among current assets, plant assets, and liabilities documented in the balance sheet.
Verified Answer
KG
Karan GuptaMay 20, 2024
Final Answer :
False
Explanation :
Unearned revenues are listed as current liabilities on the balance sheet because they represent money received for services or products that have yet to be delivered or performed.
Learning Objectives
- Clarify the variances among current assets, plant assets, and liabilities documented in the balance sheet.