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.
. Aliability created for receiving cash for future services to be provided is termed a(n) O service revenue. Oestimated warranty payable. Ounearned revenue. O 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
Porite Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. Porite's practice is an example of: Multiple Choice O Economic entity. The matching principle. Accrual accounting. Cash basis accounting.
The portion of an entity’s cash account that is held as a compensating balance must be aggregated with cash only if the related borrowings are current liabilities. Select one: True False
Under the cash basis of accounting, revenue is recorded When earned When realized When earned and realized when either earned or realized
3) Wilson Company recognizes revenue in the period in which it records an asset for the related account receivable, rather than in the period in which the account receivable is collected in cash. Wilson's practice is an example of: A) Economic entity. B) Accrual accounting. C) The matching principle. D) Cash basis accounting.
Accounting MCQ
When converting accrual basis to cash basis of accounting, which of the following adjustments should not be made to accrual basis sales to arrive at the cash basis sales? a. Deduct beginning balance of advances from customers. b. Subtract ending accounts receivable c. Add ending accounts receivable d. Add beginning accounts receivable

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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