The Liability Created When a Business Collects Cash from Its

question 82

Multiple Choice

The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________.

• A) accrued revenue
• B) accrued expense
• C) deferred revenue
• D) deferred expense

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Definitions:

Secondary Sector

The secondary sector encompasses industries involved in the manufacturing and processing of raw materials into finished goods and products.

Tertiary Sector

The segment of the economy that provides services rather than producing goods, including sectors like retail, education, and health care.

Economist

A professional in the social science discipline of economics, concerned with the analysis of goods and services distribution, consumption, and production.

Shoshana Zuboff

A scholar and author who specializes in the study of the digital economy, especially in regard to the social and economic impacts of technology.