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

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Definitions:

Fair Value

An estimated market price of an asset or liability, reflecting the amount for which it could be exchanged between knowledgeable and willing parties in an arm's length transaction.

Market Participants

Buyers and sellers in the principal market that are independent of each other, knowledgeable, and willing and able to enter into a transaction.

Intangible Assets

Assets that cannot be physically touched or seen but have value, such as patents, trademarks, and copyrights.