The liability created when a business collects cash from its customers before completing a service or delivering a product is called ________.
A)accrued revenue
B)accrued expense
C)deferred revenue
D)prepaid expense

Question

Quizplus · Accepted Answer

Deferred revenue refers to the liability created when a business collects cash from its customers before completing a service or delivering a product. Accrued revenue refers to revenue earned but not yet received, accrued expense refers to expenses incurred but not yet paid, and prepaid expense refers to expenses paid in advance.

The Liability Created When a Business Collects Cash from Its