A company receives cash in advance for services it has not yetperformed. This would be recorded as:a) Accounts Receivableb) Accrued Revenuec) Unearned Revenued) Deferred ExpenseAnswer: c) Unearned Revenue

Explanation of Accounts Receivable:Accounts Receivable refers to the money owed to a company by its…

Answered: A company receives cash in advance for…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 3MC: Revenues and expenses must be recorded in the accounting period in which they were earned or...

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Similar questions

The cash received in advance before delivering a product or performing a service is called unearned revenue.
Which of the following is a liability created when a company receives cash for services to be provided in the future? Select one: a. Unearned revenue b. Estimated warranty payable c. Service revenue d. Accrued liability
The advance cash receipts of future revenues are called ________. A. accrued expenses B. accrued revenues C. deferred revenues D. deferred expenses
Revenues and expenses must be recorded in the accounting period in which they were earned or incurred, no matter when cash receipts or outlays occur under which of the following accounting methods? revenue basis accounting B accrual basis accounting cash basis accounting tax basis accounting cr
When converting from cash basis to accrual basis accounting, which of the following adjustments should be made to cash receipts from customers to determine accrual basis service revenue. a. Subtract ending accounts receivable. b. Subtract beginning unearned service revenue. c. Add ending accounts receivable. d. Add cash sales.
Revenue is recognized when it is: a) Earned b) Collected in cash c) Invoiced d) Paid for
When an entity has the benefit of particular service but it has not received the bill (invoice) to pay for it, this creates: a. prepayment b. accrued expense. c. accounts receivable d. revenue
Under accrual-basis accounting,sales made on credit are usually reported as: A.liabilities B.revenue C.a contra account to sales revenue D.cash from operating activities
Accounting MCQ
Which of the following statements about cash received prior to the recognition of revenue in the fi nancial statements is most accurate? Th e cash is recorded as: B . accrued revenue, a liability.
What are two ways to report a companys net cash flow from operating activities? Briefly describe each method.
A contract between one or more parties creates: a. the date that cash is paid by the customer b. enforceable rights and obligations for the parties c. revenue for recognition d. the fixed amount of payments for the good or service

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A company receives cash in advance for services it has not yet performed. This would be recorded as: a) Accounts Receivable b) Accrued Revenue c) Unearned Revenue d) Deferred Expense Answer: c) Unearned Revenue