Asked by

Julie Coombs
on Oct 16, 2024

verifed

Verified

If cash is received from customers in payment for services that have not yet been performed,the business would record the cash receipt as:

A) A debit to an unearned revenue account.
B) A debit to a prepaid expense account.
C) A credit to an unearned revenue account.
D) A credit to a prepaid expense account.
E) A credit to accounts payable.

Unearned Revenue

Income received by a business for goods or services yet to be delivered or provided; also known as deferred revenue.

Prepaid Expense

Payments made beforehand for products or services that will be provided at a later date.

Cash Receipt

A document acknowledging the receipt of cash, often provided to a customer who makes a payment.

  • Learn the technique for making records of transactions using general journal entries.
verifed

Verified Answer

AS
Angelica SophiaOct 20, 2024
Final Answer:
Get Full Answer