If Cash Is Received from Customers in Payment for Products

Multiple Choice

If cash is received from customers in payment for products or services that have not yet been delivered to the customers,the business would record the cash receipt as:

A) A debit to an unearned revenue account and a credit to cash.
B) A debit to a prepaid expense account and a credit to cash.
C) A debit to cash and a credit to an unearned revenue account.
D) A debit to cash and a credit to a prepaid expense account.
E) No entry is required at the time of collection.