Which of the Following Situations May Give Rise to Unearned

question 17

Multiple Choice

Which of the following situations may give rise to unearned revenue?

• A) Providing trade credit to customers.
• B) Selling inventory.
• C) Selling magazine subscriptions.
• D) Providing manufacturer warranties.

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Definitions:

Consumer Interests

The preferences, needs, and desires of individuals as purchasers of goods and services.

Channels

Paths or routes through which goods and services flow from the producer to the consumer or in the delivery of a service.

Important

Signifying something of great relevance, value, or necessity in a particular context or situation.

Reverse Logistics

The process of moving goods from their typical final destination for the purpose of capturing value, or proper disposal, essentially reversing the supply chain flow.