A Liability Created When a Business Receives Cash from Customers

question 204

Multiple Choice

A liability created when a business receives cash from customers in advance of providing services or delivering goods is called a(n) ________.

• A) notes receivable
• B) unearned revenue
• C) accrued liability
• D) service revenue

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Definitions:

Slow-To-Warm-Up

A temperament in some children who are cautious in new situations or with unfamiliar people, but gradually become more comfortable over time.

Basal Metabolic Rate

The number of calories required to keep your body functioning at rest, a crucial component of overall metabolism.

Surface Area

A measure of the total area that the surface of an object occupies.

Lymphoid Tissue

Type of tissue found in the lymphatic system that produces lymphocytes, which are essential for the immune response.