When a business receives cash from a customer before earning the revenue,they credit:
A)Accounts Receivable.
B)Sales Tax Payable.
C)Accounts Payable.
D)Unearned Revenue.

Question

Quizplus · Accepted Answer

When a business receives cash from a customer before earning the revenue, it is recorded as unearned revenue because the business has not yet performed the services or delivered the products that the customer has paid for.

When a Business Receives Cash from a Customer Before Earning