Unearned Revenue Is Reported in the Financial Statements As

question 151

Multiple Choice

Unearned revenue is reported in the financial statements as:

• A)A revenue on the balance sheet.
• B)A liability on the balance sheet.
• C)An unearned revenue on the income statement.
• D)An asset on the balance sheet.
• E)A financing activity on the statement of cash flows.

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Definitions:

Outstanding Shares

The total number of shares of a company that are currently owned by shareholders, including those held by institutional investors and restricted shares owned by the company’s officers and insiders.

Dividends Paid

The portion of a company's earnings distributed to shareholders as a payment.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue, also known as net earnings or net profit.

Available-For-Sale Securities

These are debt or equity securities purchased with the intent of selling before they reach maturity, but are not actively traded, and are recorded at fair market value on the balance sheet.