An Internet Service Provider Requires Customers to Prepay for Six

Multiple Choice

An internet service provider requires customers to prepay for six months' service. On August 1, 2010 Ricky Roberts paid $480 for internet service for the next six-month period. On August 1, how will the internet service record the amount received from Roberts?

A) Prepaid expense
B) Unearned revenue
C) Accrued revenue
D) Earned revenue
E) Long-term liability