If Cash Is Received from Customers in Payment for Products

question 87

Multiple Choice

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

• A)A debit to an unearned revenue account.
• B)A debit to a prepaid expense account.
• C)A credit to an unearned revenue account.
• D)A credit to a prepaid expense account.
• E)No entry is required at the time of collection.

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Definitions:

Sterilization

The destruction of all microorganisms, including bacterial spores, by specific means.

Organisms

Living entities that can act or function independently, ranging from single-celled bacteria to complex multicellular forms like animals and humans.

Autoclave

A device that uses pressurized steam to sterilize instruments and equipment.

Optical Microscope

An instrument that uses visible light and lenses to magnify small objects, allowing them to be observed in detail.