Unearned Revenue on the Books of One Company Is Likely

question 69

Multiple Choice

Unearned revenue on the books of one company is likely to be

• A) a prepaid expense on the books of the company that made the advance payment.
• B) an unearned revenue on the books of the company that made the advance payment.
• C) an accrued expense on the books of the company that made the advance payment.
• D) an accrued revenue on the books of the company that made the advance payment.

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Definitions:

Collection Agency

is an organization that pursues the collection of debts owed by individuals or businesses on behalf of creditors.

Threatening to Sue

Expressing an intention to initiate legal action against someone.

Dodd-Frank Act

A United States federal law that places regulation of the financial industry in the hands of the government, aimed at reducing risks in the financial system.

Consumer Financial Protection Bureau

A U.S. government agency aimed at ensuring consumer protection in the financial sector and enforcing laws related to financial products and services.