If Cash Is Received from Customers in Payment for Products

question 145

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

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Definitions:

Prenatal Care

Healthcare provided to a pregnant woman to monitor and promote a healthy pregnancy and delivery.

Postpartum Depression

A type of mood disorder associated with childbirth, affecting some women, characterized by deep sadness, low energy, anxiety, and changes in sleeping or eating patterns.

Empty Nest Syndrome

The feeling of loneliness or sadness that parents may experience when their children have grown up and left home.

Uneven Weight Bearing

A condition where an individual puts more weight on one leg or side of the body than the other, often due to injury or dysfunction.