In accrual accounting, there are situations when a company has received cash from customers but the company can not yet recognize the revenue as earned.

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This situation can arise when the company has not yet completed the necessary work or delivered the product to the customer, or when there are contingencies or uncertainties that prevent the company from recognizing the revenue as earned. In accrual accounting, revenue is recognized when it is earned, regardless of when the cash is received.

In Accrual Accounting, There Are Situations When a Company Has