Question

Describe a current liability that will convert into future revenue on your assigned company’s Annual Report?

Answer 1

Answer :- Unearned Income is a current liability that will be convert into future revenue in annual reports . And so, unearned income should not be included as income yet; rather, it is recorded as a liability. This liability represents an obligation of the company to render services or deliver goods in the future. It will be recognized as income only when the goods or services have been delivered or rendered.

So therefore a unearned income is generally show as current liability in current period annual report that will convert into future revenue when company render services or deliver goods in the future.