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When a company receives cash from customers before earning the​ revenue, _________ will be credited.

Sagot :

When a business receives cash from customers before earning the revenue, the Unearned Revenue account is credited. Hence the correct option choice for this question is option (d).

What are unearned revenues ?

Unearned revenue is regarded as money received by a person or business for a good or service that hasn't yet been rendered or supplied. It can be thought of as a "prepayment" for goods or services that a person or organization anticipates giving the customer in the future. This prepayment entails a duty on the part of the seller up to the good or service is delivered equal to the income earned.

Deferred revenue and advance payments are other names for unearned revenue.

Businesses that sell subscription-based goods or other services that demand upfront payments are the most likely to generate unearned revenue.

To know more about, unearned revenues, visit :

brainly.com/question/14952769

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The complete question is given below :

When a business receives cash from customers before earning the revenue, the ________ account is credited.

a. Accounts Receivable

b. Sales Tax Payable

c. Accounts Payable

d. Unearned Revenue