Unearned Revenue on the Books of One Company Is Likely

question 69

Multiple Choice

Unearned revenue on the books of one company is likely to be

• A) a prepaid expense on the books of the company that made the advance payment.
• B) an unearned revenue on the books of the company that made the advance payment.
• C) an accrued expense on the books of the company that made the advance payment.
• D) an accrued revenue on the books of the company that made the advance payment.

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Definitions:

Employee Information

Data related to employees, such as personal details, employment history, and salary, maintained by an employer.

Accounts Payable

Money owed by a company to vendors or suppliers for products or services received but not yet paid for.

Pay Bills Window

A feature in financial software that allows users to manage and make payments to their creditors or billers.

Outstanding Checks

Outstanding checks are checks that have been written and recorded in the issuing account but have not yet been cleared or cashed by the recipient.