What is the liability created when receiving cash from customers before delivering goods or services called?

The situation described in the question pertains to cash received from customers prior to the delivery of goods or services, which creates a specific type of liability for the company. This liability reflects an obligation to provide a product or service at a later date, as the company has already received payment for something not yet fulfilled.

The correct term for this situation is "Unearned Revenue." When a business receives cash in advance of providing goods or services, it cannot recognize this as revenue until the delivery occurs. Thus, it records this amount as a liability on its balance sheet, indicating that it has a future obligation to the customer. Until the delivery is made, the cash can't be considered earned income; rather, it symbolizes a debt to the customer for goods or services that are to be rendered in the future.

In contrast, the other options reflect different financial concepts that do not apply to the situation of receiving cash before performance. Accrued Revenue, for instance, refers to income that has been earned but not yet received, while Accounts Payable is a liability that indicates what a company owes to its suppliers, and Deferred Value does not commonly reflect recognized accounting terminology in this context.