Answered: receipt of cash from customers in…

Business

Accounting

receipt of cash from customers in payment for products or services

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 32MC: Which of the following pairs of accounts are impacted the same with debits and credits? A. Cash and...

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Question

31)

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:

(Hint: Which liability account?)

Group of answer choices

Recorded as a credit to a prepaid expense account.

Recorded as a debit to an unearned revenue account.

Recorded as a debit to a prepaid expense account.

Recorded as a credit to an unearned revenue account.

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