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:

Payback Periods

The amount of time it takes for an investment to generate cash flows sufficient to recover its initial cost.

Investments

Items or resources purchased with the intention of earning income or increasing in value as time goes on.

Short Payback Period

A time frame in which an investment is expected to be recovered quickly, indicating potential attractiveness.

Revenue

The cumulative earnings generated by a business from sales of products or offering of services over a designated period.