Question

Match each definition with its related term by selecting the appropriate letter from the dropdown below.

Answer 1

Answer:

A liability account used to record the obligation to provide future services or return cash that has been received before services have been provided.  ⇒ UNEARNED REVENUE represents cash paid in advance by your customers for future services or goods that you must provide.

B. Costs that result when a company sacrifices resources to generate revenues in the current period.  ⇒ EXPENSES represent all the money or resources that a business uses in its regular business operations.

C. A type of asset account used to record the benefits obtained, when cash is paid before expenses are incurred.  ⇒ PREPAID EXPENSES represent services paid in advance, e.g. you purchase a 2 year insurance policy.

D. The amount charged to customers for providing goods or services. ⇒ REVENUES represent the money that your company collects or should collect in the future in exchange for providing goods or services to its customers.