Macie Has $25 in Her Checking Account When Her EFTS

question 81

Multiple Choice

Macie has $25 in her checking account when her EFTS card and PIN are stolen. If Macie notifies her bank tomorrow, the day after the theft of her card, her loss is limited to:

• A)$0.
• B)$25.
• C)$50.
• D)$400.
• E)$500.

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Definitions:

Unearned Revenue

Unearned revenue refers to money received by a company for goods or services yet to be delivered or performed, hence recognized as a liability until the service is completed.

Financial Statements

Reports that summarize the financial activities and condition of a business or individual.

Liability

A financial obligation or amount owed by a company to creditors, employees, tax authorities, or other entities.

Unearned Fees

Income received by a business for services yet to be performed or delivered, recorded as a liability on the balance sheet until the services are completed.