A Liability Created by the Receipt of Cash from Customers

question 19

Multiple Choice

A liability created by the receipt of cash from customers in payment for products or services that have not yet been delivered to the customers is:

• A) Recorded as a debit to an unearned revenue account.
• B) Recorded as a debit to a prepaid expense account.
• C) Recorded as a credit to an unearned revenue account.
• D) Recorded as a credit to a prepaid expense account.
• E) Not recorded in the accounting records.

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Definitions:

Military Establishment

The structures, institutions, and personnel of a nation's armed forces responsible for defense and security policies.

Military Adventurism

Refers to the aggressive or risky military actions by a country without regard for potential consequences, often to promote political or ideological goals.

Covert Operations

Secret activities carried out by governments or organizations usually aimed at influencing conditions in foreign countries without revealing their source.

CIA

Central Intelligence Agency, a civilian foreign intelligence service of the federal government of the United States, tasked with gathering, processing, and analyzing national security information.