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:

Neurotoxin

A toxin that specifically targets neural tissues, potentially causing damage to the nervous system, which includes both central and peripheral components.

Physiological pH

The specific value of pH (around 7.4) within biological systems where the internal environment is regulated to maintain stable and optimal conditions for cellular processes.

Sulfa Drugs

A group of synthetic antibacterial agents that contain the sulfonamide group and are used to treat bacterial infections.

Folic Acid

A B-vitamin that is essential in cell growth and development, critical for pregnant women to prevent neural tube defects in the fetus.