When a Revenue Is Collected and Recorded in Advance, It

question 123

Multiple Choice

When a revenue is collected and recorded in advance, it is normally accounted for as a(n) ___________ revenue.

• A) accrued
• B) prepaid
• C) unearned
• D) cash

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Definitions:

Society

An organized group of individuals living together in a structured community with shared laws, traditions, and values.

Economizing Problem

The need to make choices about how to best use limited resources to satisfy unlimited wants.

Limited Resources

The economic principle that the available resources (such as time, money, and raw materials) are insufficient to satisfy all wants and needs.

Unlimited Wants

The economic concept that human desires and needs are infinite and vary in intensity, contrasting with limited available resources.