Unearned or deferred revenue can occur when

A) services are provided prior to receipt of cash
B) goods are sold on account
C) services are provided after the receipt of cash
D) goods are sold for cash

Unearned Revenue

Money received by a company for a service or product that has yet to be delivered or provided.

Deferred Revenue

Income received by a company for goods or services yet to be delivered or performed, recorded as a liability on the balance sheet until the goods or services are provided.

Receipt of Cash

This refers to the actual inflow of cash into a business, resulting from transactions such as cash sales, receiving payment from debtors, or any other cash receipts.