Where Does Unearned Revenue to Be Earned in Six Months

question 124

Multiple Choice

Where does unearned revenue to be earned in six months appear on the balance sheet?

• A)under long-term investments
• B)under current liabilities
• C)under current assets
• D)under long-term assets

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Definitions:

Transactions

Transactions refer to the exchange of goods, services, or funds between two or more parties, which are recorded and form the basis of accounting.

Costs Of Quality

The cost associated with controlling quality (prevention and appraisal) and failing to control quality (internal and external failure).

Prevention Costs

Expenditures made to avoid defects in products or inefficiencies in services, part of quality control measures.

Value-Added

The enhancement a company gives its product or service before offering the product to customers, increasing the product's value.