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:

Radio Waves

Electromagnetic waves with wavelengths longer than infrared light, used for communication among various devices, such as radios and televisions.

Pituitary Gland

An endocrine gland about the size of a pea situated at the base of the brain, responsible for the secretion of various hormones that regulate growth, metabolism, and other important body functions.

Social Bonding

The process of developing attachments and connections between individuals, fostering cooperation and community.

Oxytocin

A hormone and neurotransmitter involved in childbirth and lactation, also known to play a role in social bonding, sexual reproduction, and during and after childbirth.