Which of the Following Is a Liability Created When a Company

question 45

Multiple Choice

Which of the following is a liability created when a company receives cash for services to be provided in the future?

• A) Unearned revenue
• B) Accrued liability
• C) Service revenue
• D) Estimated warranty payable

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Definitions:

Right of Access

The legal right to enter or use a property, facility, or service, often subject to certain conditions or restrictions.

Public Company Accounting Oversight Board

An independent oversight body established by Congress to oversee the audits of public companies in order to protect investors and the public interest by promoting informative, fair, and independent audit reports.

Scienter

Knowledge of wrongdoing or fraudulent intent, often a necessary element to prove in securities fraud cases.

Negligent

Failing to exercise the care that a reasonably prudent person would exercise in similar circumstances, often leading to harm or injury.