unearned revenue is on the income statement
Balance Sheet. A balance sheet indicates a companyâs financial position as of a specific date. The balance sheet indicates the companyâs assets, liabilities and shareholdersâ equity. Unearned revenue appears on the balance sheet as opposed to the income statement.A companyâs unearned revenue account represents an obligation for the company to provide the goods or services to the customer who has already prepaid. company recognizes revenue when a sale is made or when the service is provided. Unearned revenue occurs when a company receives cash but has not yet provided the goods and services. Unearned revenue does not appear on the income statement with the companyâs other revenues.