A Deposit Received in Advance by Adelaide Co for Services

question 51

Multiple Choice

A deposit received in advance by Adelaide Co for services not yet supplied can be initially recorded by Adelaide in a liability account called:

• A) sales.
• B) accounts payable.
• C) unearned income.
• D) expenses payable.

---

Definitions:

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Expected Benefit Approach

A method used in actuarial science and finance to calculate the anticipated benefits and corresponding costs or contributions to a pension plan over time.

Output Market

The marketplace in which goods and services produced by businesses are sold or offered to end users or consumers.

U.S.GAAP

United States Generally Accepted Accounting Principles, a standard framework of accounting rules for financial reporting.