BM Ltd Has a $30 000 Balance in Its Unearned

question 12

Multiple Choice

BM Ltd has a $30 000 balance in its Unearned service revenue account. Where would this account appear in the financial statements?

• A) As revenue in the income statement
• B) As a current asset in the balance sheet
• C) As a current liability in the balance sheet
• D) None of the above

---

Definitions:

Investment Banker

A professional or firm that acts as an intermediary in large and complex financial transactions, such as mergers, acquisitions, and public offerings.

Public Stock Offering

The process by which a company sells its stock to the general public for the first time, known as an initial public offering (IPO).

TSX

The Toronto Stock Exchange, one of the largest stock exchanges in the world, based in Canada.

OTC

Over-the-counter; referring to securities traded in some context other than on a formal exchange.