Question

In the blank space beside each numbered balance sheet item, enter the letter of its balance sheet classification. If the item should not appear on the balance sheet, enter a Z in the blank.

A. Current assets

B. Long-term investments

C. Plant assets

D. Intangible assets

E. Current liabilities

F. Long-term liabilities

G. Equity

11. Unearned services revenue

Short answer

The correct answer is E, Current liabilities.

Step-by-step solution

Definition of Revenue

Revenue is the amount received by the organizations in exchange for goods or services provided by them to the organization's customers.

Reason of choice

According to the revenue recognition concept of accounting, revenue should only be recognized when earned, so until the organization earns the income, it should be shown as the organization's liability