Answered: A company receives cash from a customer…

A company receives cash from a customer before providing services. This is recorded as: a) Revenueb) Accounts Receivablec) Unearned Revenued) Retained Earnings

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 10Q: When a company collects cash from customers before performing the contracted service, what is the...

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Question

A company receives cash from a customer before providing services. This is recorded as:

a) Revenue
b) Accounts Receivable
c) Unearned Revenue
d) Retained Earnings

Definition Definition Remaining net income of the company after the required dividends are paid to shareholders. This surplus money is usually invested back into the business to expand its business operations or launch a new product.

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