The advance cash receipts of future revenues are called:
A)accrued revenues.
B)prepaid expenses.
C)unearned revenues.
D)accrued expenses.

Question

Quizplus · Accepted Answer

The advance cash receipts of future revenues are called unearned revenues. This is because the company has received payment for goods or services that have yet to be provided or delivered, and therefore cannot yet be recorded as revenue. As the goods or services are provided or delivered, the unearned revenue is gradually recognized as revenue on the income statement.

The Advance Cash Receipts of Future Revenues Are Called