Which of the following is classified as a liability on the balance sheet?

Unearned revenue is classified as a liability on the balance sheet because it represents money received by a business for goods or services that have not yet been delivered or performed. This indicates an obligation on the part of the business to provide those goods or services in the future. Until the company fulfills its commitment, it cannot recognize this revenue as earned, hence it remains a liability reflecting an outstanding obligation.

In contrast, accounts receivable represents amounts owed to the business, which is an asset, as it is expected to bring future economic benefits. Prepaid insurance is also classified as an asset because it represents a payment made in advance for insurance coverage that will benefit the company in the future. Cash is straightforwardly categorized as an asset since it is liquid and readily available for use by the business.