Unearned Revenue Is Reported on the Balance Sheet As

question 81

Multiple Choice

Unearned revenue is reported on the balance sheet as:

• A) a revenue account.
• B) a current liability.
• C) an unearned liability.
• D) a long-term debt.

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Definitions:

Cost of Goods

The total expense incurred to create products or services sold by a company, including labor, materials, and overhead.

LIFO Method

Last In, First Out method, an inventory costing method where the last items purchased are the first ones sold.

Ending Inventory

The value of goods available for sale at the end of an accounting period, determined by a physical count or by applying the cost flow assumption.

Specific Invoice Method

A method of inventory cost calculation that identifies and uses the actual cost of each specific item sold.