If the Cash Is Received Before the Related Goods or Services

question 153

Multiple Choice

If the cash is received before the related goods or services are delivered,which of the following will be recorded?

• A)Deferred Revenue,a liability.
• B)Accounts Receivable,an asset.
• C)Pre-earned Revenue,which increases Retained Earnings.
• D)Service Revenue,which increases Retained Earnings.

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Definitions:

Civil Penalties

Fines or other penalties imposed by a governmental entity as punishment for violating particular civil laws, not constituting criminal sanctions.

Criminal Penalties

Sanctions or punishments imposed by law for the commission of criminal acts, such as fines, probation, or imprisonment.

Aesthetic and Massage Commission

A regulatory body overseeing licensing, practice standards, and ethics for professionals in aesthetics and massage therapy; may not exist under this specific name.

DUI Charge

A legal charge for driving under the influence of alcohol or drugs, impacting the driver's ability to safely operate a vehicle.