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:

Squeaky Stair

A common household issue where one or more steps produce a squeaking noise when pressure is applied, typically due to loose components or friction.

Law of Small Numbers

A cognitive bias leading to the erroneous belief that small samples accurately represent an entire population.

Gambler's Fallacy

The mistaken belief that if something happens more frequently than normal during a given period, it will happen less frequently in the future, or vice versa.

Celebrations

Events observed to honor and commemorate a significant occasion or achievement with festivities.