PRC-1 · Chapter 4 · Question 86 of 100
Unearned revenues, representing obligations to provide services or goods in the near future, are typically classified in the statement of financial position as:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Current liabilities
Explanation
Because the business owes the service or product to the customer within the next accounting period, unearned revenues are classified as current liabilities.
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