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

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Definitions:

Spanish Influence

The cultural, linguistic, and historical impact of Spain and Spanish colonization on other regions, especially evident in Latin America, parts of the United States, and the Philippines.

Land Acquisition

The process of buying or obtaining land for various purposes, such as development, conservation, or building infrastructure.

North America

A continent in the Northern Hemisphere, bounded by the Atlantic, Pacific, and Arctic oceans, including countries such as the USA and Canada.

Pennsylvania's Residents

Pennsylvania's residents refer to individuals living in the state of Pennsylvania, contributing to its diverse culture and economy.