The Liability Created When a Business Collects Cash from Its

question 82

Multiple Choice

The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________.

• A) accrued revenue
• B) accrued expense
• C) deferred revenue
• D) deferred expense

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Definitions:

Cost

The amount of money required to purchase goods or services or the expenditure incurred to produce something.

Replacement Parts

Components designed to replace damaged or worn-out parts of a machine or vehicle, ensuring proper function.

Hot Tub Water Heater

A device used specifically to heat the water in a hot tub to a comfortable and therapeutic temperature.

Selling Price

The amount of money for which a product or service is sold to the purchaser.