Which of the Following Is Associated with Cash Received in Advance

question 38

Multiple Choice

Which of the following is associated with cash received in advance for services to be performed in the future?

• A) Accounts payable
• B) Estimated warranty payable
• C) Accrued expense
• D) Unearned revenue

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Definitions:

Toll Booth

A checkpoint along a toll road, bridge, or tunnel where drivers pay a fee to use the roadway.

Pricing Strategy

An approach a business takes to set its products' or services' prices, considering factors like market demand, competition, cost, and desired profit margins.

Service Marketing Strategy

Approaches and methodologies used specifically for marketing services, focusing on the unique characteristics of services like intangibility and inseparability.

Inseparability

A characteristic of services that denotes the simultaneous production and consumption, meaning the service cannot be separated from its provider.