If Cash Is Received from Customers in Payment for Products

question 87

Multiple Choice

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

• A)A debit to an unearned revenue account.
• B)A debit to a prepaid expense account.
• C)A credit to an unearned revenue account.
• D)A credit to a prepaid expense account.
• E)No entry is required at the time of collection.

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Definitions:

Occipital Bone

A cranial bone located at the back and lower part of the skull, important for head and brain structure and protection.

Bone Cells

Specialized cells that make up bone tissue, responsible for the creation, maintenance, and repair of bone.

Diaphysis

The shaft or central part of a long bone, located between the bone's two ends.

Yellow Bone Marrow

A type of bone marrow primarily composed of fat cells, found in the cavities of long bones, and plays a role in the storage of fats.