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:

Embryo

An early stage in the development of an organism, in humans covering the period from conception until around the eighth week, where it is then referred to as a fetus.

Fetus

A developing mammal or human from the embryonic stage to birth, typically spanning from the ninth week of gestation until childbirth.

Fetus

The developmental stage of a human between the embryonic phase and birth.

Embryonic Period

A stage in prenatal development occurring from the 2nd to the 8th week after fertilization during which major organs and structures begin to develop.