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.

Question

Quizplus · Accepted Answer

When cash is received from customers in payment for services that have not yet been performed, this represents unearned revenue. Thus, the business should record the cash receipt as a credit to an unearned revenue account.

If Cash Is Received from Customers in Payment for Services