Which of the Following Liabilities Is Created When a Company

question 16

Multiple Choice

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

• A) Unearned Revenue
• B) Accrued Liability
• C) Accounts Payable
• D) Estimated Warranty Payable

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Definitions:

Corporate Vertical Marketing System

A system in which the parent company has complete control and can dictate the priorities and objectives of the supply chain; it may own facilities such as manufacturing plants, warehouse facilities, retail outlets, and design studios.

Retailing Activities

Tasks and functions involved in selling goods and services directly to consumers for their personal, non-business use.

Supply Chain Management

The oversight of materials, information, and finances as they move in a process from supplier to manufacturer to wholesaler to retailer to consumer.

Corporate Vertical Marketing System

A vertically integrated marketing strategy where a single company controls multiple levels of its distribution and production process.