These are fees received but not yet earned, such as professional fees from clients. Unearned fees is classified as a current liability on a company's balance sheet, assuming that it will be credited within the normal accounting cycle.
Unearned Fees appear on the
Unearned fee and unearned revenue is that amount which is received from client in advance but actual services are not provided yet to client.
yes
One is a liability and the other an asset.
It depends
Unearned Fees appear on the
yes
Unearned fee and unearned revenue is that amount which is received from client in advance but actual services are not provided yet to client.
yes
One is a liability and the other an asset.
It depends
a paper in current assets in liability
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
yes
On the balance sheet as a current liability.
Unearned fees show up under liabilities. Liabilities are obligations (to pay cash, render services, or deliver goods) to other parties. When customer pay in advance, the firm has an obligation to the customer. When the firm does deliver the products/render the services, the liability unearned revenues is reduced and sales are recognized. This is an application of accrual accounting, since the time of the cash inflow is not the same as the time of the sale.
an overstatement of liabilities