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:

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Innate Knowledge

Knowledge that is believed to be inborn or naturally present in the mind from birth, as opposed to acquired through experience.

Object Properties

Characteristics of objects that are perceived by the senses, such as shape, color, texture, and size.

Infancy

The stage in human development that spans from birth to 24 months, characterized by rapid physical and cognitive growth.