Under the Cash Basis of Accounting, the Receipt of Cash

question 32

Multiple Choice

Under the cash basis of accounting, the receipt of cash from a customer in advance of performing the service would be credited to a(n) :

• A)prepaid asset account.
• B)deferred asset account.
• C)unearned revenue account.
• D)revenue account.

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Definitions:

Ringworm

A common fungal infection of the skin, not caused by a worm, which typically appears as a red, circular rash with clearer skin in the center.

Addictive Drugs

Drugs that produce a biological or psychological dependence in users, leading to increasingly powerful cravings for them.

Biological Dependence

A state in which an organism requires a substance to function normally, with cessation causing physical symptoms of withdrawal.

Psychological Dependence

A form of dependence characterized by a perceived need to use a substance for its mental effects, often leading to cravings and misuse.