Answered: When a company receives cash in advance…

When a company receives cash in advance from a customer for services to be provided in the future, which account is credited?a) Accounts Receivableb) Cashc) Unearned Revenued) Revenue

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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Question

When a company receives cash in advance from a customer for services to be provided in the future, which account is credited?
a) Accounts Receivable
b) Cash
c) Unearned Revenue
d) Revenue

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