Question

Unearned Fees appear on the a.income statement as revenue b.balance sheet as a current liability c.balance sheet in the stockholders' equity section d.balance sheet in the current assets section

Answer 1

Both a and b.

Step-by-step explanation:

In accounting an unearned fee is money a business receives from a consumer for any type of services that has still to finish in the future. Suppose that our small business collects unearned fees, like an annual membership fee, we must record the annual membership fee initially as a current liability on the balance sheet but when we complete this service, the fee becomes revenue which has been earned and lastly we record this fee on the income statement.