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