Unearned or Deferred Revenue Can Occur When

question 42

Multiple Choice

Unearned or deferred revenue can occur when

• A)services are provided prior to receipt of cash
• B)goods are sold on account
• C)services are provided after the receipt of cash
• D)goods are sold for cash

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Definitions:

Owner Withdrawal

The amount of money or assets that the owner takes from the business for personal use.

Utilities Expense

The cost incurred by a business or household for essential services such as electricity, water, and gas.

Utility Bill

A periodic invoice received by consumers for usage of utilities such as electricity, water, natural gas, or sewage services.

Accounts Payable

Accounts Payable are obligations a company has to pay off to its creditors or suppliers within a short period, typically one year or less.