A Customer's Promise to Pay in the Future for Services

question 94

Multiple Choice

A customer's promise to pay in the future for services or goods sold is called a(n) ________.

• A) Accounts Receivable
• B) Accounts Payable
• C) Unearned Revenue
• D) Notes Payable

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Definitions:

Stock Acquisition

The purchase of enough of the voting stock of a corporation to allow the buyer to control the corporation. Also called takeover.

Merger

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Consolidation

The joining of two corporations.

Securities

Financial instruments that signify ownership in a public company (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.