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Amounts earned from delivering goods or services to customers are called

a. notes receivable
b. unearned revenues
c. equity
d. revenues

1 Answer

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Final answer:

In a business context, amounts earned from delivering goods or services to customers are called revenues. It is a critical aspect of the income statement and represents the income generated from normal business operations.

Step-by-step explanation:

The amounts earned from delivering goods or services to customers in a business context are referred to as revenues. When a business provides a product or service and receives payment, it is recording revenue, which is a key component of the income statement, reflecting the money that the company generates from its ordinary business activities.

Here are the options broken down:

  • Notes receivable: This represents a written promise that a customer will pay the business a fixed amount of funds at a future date.
  • Unearned revenues: Are payments received by a company for which the goods or services have not yet been delivered.
  • Equity: Refers to the owner's interest in the company, representing the residual assets after liabilities are deducted.
  • Revenues: The correct answer, these are the earnings a company generates from its business operations.

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