A Liability Created by the Receipt of Cash from Customers

question 61

Multiple Choice

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is

• A) recorded as a debit to an unearned revenue account
• B) recorded as a debit to a prepaid expense account
• C) recorded as a credit to an unearned revenue account
• D) recorded as a credit to a prepaid expense account
• E) not recorded in the accounting records

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Definitions:

Hair Cells

Sensory cells located in the inner ear that transduce mechanical sound vibrations into neural signals, enabling hearing.

Auditory Receptors

Specialized cells located within the inner ear that convert sound waves into electrical signals, which the brain interprets as sound.

Tympanic Membrane

Also known as the eardrum, it is a thin membrane that separates the outer ear from the middle ear and vibrates in response to sound waves.

Detection

The act or process of discovering or identifying the presence of a substance, signal, or condition.