Which of the Following Is a Liability, Created When a Company

question 11

Multiple Choice

Which of the following is a liability, created when a company receives cash for services to be provided in the future?

• A)Estimated warranty payable
• B)Accrued liability
• C)Service revenue
• D)Unearned revenue

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Definitions:

Net Income

The amount of money that remains from revenues after all expenses, taxes, and costs have been subtracted; a measure of profitability.

Net Profit Margin Ratio

A financial ratio indicating the percentage of net income generated from total revenue.

Balance Sheet

A statement of finance that shows a corporation's assets, liabilities, and owner's equity at a specific moment.

Balance Sheet

An accounting record that outlines a business's assets, obligations, and equity of shareholders at a designated time.