An Unearned Revenue Is an Example of A(an)

question 5

Multiple Choice

An unearned revenue is an example of a(an)

• A) Deferred credit.
• B) Accrued liability.
• C) Customer billing that takes place before a job is finished.
• D) Accounts receivable.

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Definitions:

Equivalent Units

A concept used in cost accounting to convert the amount of work in process into a number of completed units of output.

Department's Output

The total amount of goods or services produced by a specific department within a given period.

Direct Materials

Components and primary raw inputs used in the creation of a product, identifiable as integral parts of the finished product.

Direct Labor

The wages or expenses incurred for labor that is directly involved in the manufacturing of a product.