The name Unearned Revenue suggests that this type of account is a revenue account and belongs on the income statement Instead the account appears on the balance sheet as a liability Explain why this is appropriate and why unearned revenues may need to be adjusted at the end of the period ...

Unearned revenue exists when cash is received for goods or services to be provided in the future ...

The name Unearned Revenue suggests that this type of account is a revenue account and belongs on

Question:

The name Unearned Revenue suggests that this type of account is a revenue account and belongs on the income statement. Instead the account appears on the as a liability. Explain why this is appropriate and why unearned revenues may need to be adjusted at the end of the period.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...