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A company that sprays chemicals in residences to eliminate or prevent infestation of insects requires that customers prepay for 3 months’ service at the beginning of each new quarter. Which term appropriately
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A company that sprays chemicals in residences to eliminate or prevent infestation of insects requires that customers prepay for 3 months’ service at the beginning of each new quarter. Which term appropriately describes the prepayment from the perspective of the service provider?

User Pokkimon
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5 votes

Answer:

Unearned/ deferred revenue

Step-by-step explanation:

Unearned/ deferred revenue is money obtained from a customer for a service that is yet to be rendered or for a product yet to be delivered. In accounting terms, unearned revenue is recorded as a liability on the company's statement of financial position.

User The Black Horse
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