Unearned Revenue Is Reported on the Financial Statements As

question 166

Multiple Choice

Unearned revenue is reported on the financial statements as:

• A)A revenue on the balance sheet.
• B)A liability on the balance sheet.
• C)An unearned revenue on the income statement.
• D)An asset on the balance sheet.
• E)An operating activity on the statement of cash flows.

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Definitions:

Reporting Tests

Procedures or checks utilized to ensure financial information is accurate, complete, and in compliance with regulations.

Quantitative Thresholds

Fixed numerical limits or criteria used to trigger certain actions or classify objects in financial and statistical contexts.

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.

Reportable

Information or data that must be disclosed or submitted as required by law, regulations, or organizational policies.