Where Does Unearned Subscription Revenue Appear on the Balance Sheet

question 23

Multiple Choice

Where does Unearned subscription revenue appear on the balance sheet?

• A) Under Long-term investments
• B) Under Current liabilities or Long-term liabilities
• C) Under Current assets or Long-term investments
• D) Under Long-term assets

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Definitions:

Direct Expense

Expenses that can be directly traced to a specific cost object, such as a product or a department, including materials and labor directly involved in production.

Indirect Expense

Costs that are not directly tied to the production of goods or services, such as utilities, rent, and administrative salaries.

Direct Expense

Costs that can be directly attributed to the production of specific goods or services, such as raw materials and labor.

Electricity

Form of energy resulting from the existence of charged particles, used for power and lighting.