Suppose That a Customer Pays a Deposit for Work to Be

Multiple Choice

Suppose that a customer pays a deposit for work to be done next year. The business will increase an asset account (cash at bank) and will:

A) Increase owner's equity (revenue) .
B) Decrease an asset (accounts receivable) .
C) Increase a liability (unearned revenue) .
D) Increase an asset (revenue) .