A Liability Created When a Business Collects Cash from Customers

question 6

Multiple Choice

A liability created when a business collects 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

---

Definitions:

Mission Statement

A short statement that defines an organization's purpose, objectives, and approach to reach those objectives.

Community College

A type of educational institution that provides higher education and lower-level tertiary education, granting certificates, diplomas, and associate's degrees.

SWOT Analysis

A method of evaluating a project or business venture by systematically analyzing internal strengths and weaknesses along with external opportunities and threats.

Strategy-Related Factors

Elements or considerations that are crucial in the planning and execution of a business or organizational strategy.