Chips-N-Bits Company Sells Service Contracts for Personal Computers

question 66

Multiple Choice

Chips-n-Bits Company sells service contracts for personal computers.The service contracts are for a one-year,two-year,or three-year period.All sales are for cash and all receipts are credited to Unearned Service Contract Revenues.This account had a balance of $144,000 at December 31,2012,before year-end adjustment.Service contract costs are charged as incurred to the Service Contract Expense account,which had a balance of $36,000 at December 31,2012.Service contracts still outstanding at December 31,2012,expire as follows:

What amount should be reported as unearned service contract revenues in Chips-n-Bits December 31,2012,balance sheet?

• A)$49,000
• B)$59,000
• C)$95,000
• D)$108,000

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Definitions:

Moral Commitment

The binding adherence to ethical principles and standards of behavior.

Co-Creates

In a healthcare context, it implies a collaborative effort between patient and provider to achieve health goals.

Transpersonal Caring Occasion

An event or encounter in which a deep, meaningful connection is formed between nurse and patient, enhancing healing and well-being.

Compassion

A deep awareness of and sympathy for another's suffering, coupled with a desire to alleviate it.