Which of the Following Situations Results in Unearned Revenue

question 37

Multiple Choice

Which of the following situations results in unearned revenue?

• A) Collected $100 from a customer who purchased goods a month ago
• B) Received an order from a customer who will purchase and pay for goods in two weeks
• C) Sold goods for $100 today with payment due from the customer in 30 days
• D) Received $100 cash from a customer for an order of goods to be shipped next month

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Definitions:

Quantity Demanded

The specific amount of a good or service consumers are willing to purchase at a given price.

Price Changes

Variations in the cost of goods and services over time in the market.

Price Elasticity

A measure of the sensitivity of demand for a product relative to changes in its price.

Minus Sign

A symbol (-) used to indicate subtraction or to represent a negative value.