If Cash Is Received from Customers in Payment for Products

question 87

Multiple Choice

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

• A)A debit to an unearned revenue account.
• B)A debit to a prepaid expense account.
• C)A credit to an unearned revenue account.
• D)A credit to a prepaid expense account.
• E)No entry is required at the time of collection.

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Definitions:

Miles Davis

An influential American jazz musician known for his significant contributions to the development of jazz music through various styles and eras.

Segregation

The enforced separation of different racial groups in a country, community, or establishment, often resulting in the use of separate facilities and services.

Chief Justice

The highest-ranking judge in a supreme court, responsible for leading the judiciary and presiding over cases of the highest importance.

Brown versus Board of Education

A landmark 1954 United States Supreme Court case that declared state laws establishing separate public schools for black and white students to be unconstitutional, thereby overturning the "separate but equal" doctrine and significantly advancing the Civil Rights Movement.