It is acceptable to record cash received in advance of providing products or services to revenue accounts.

Name: It is acceptable to record cash received in advance of providing products or services to revenue accounts.
Brand: Quizplus
Rating: 4.8 (38 reviews)

Question

Quizplus · Accepted Answer

This is true because the cash received in advance is considered unearned revenue and can be recorded in a liability account until the products or services are provided. When the products or services are provided, the revenue can be recognized and the liability account can be decreased.

It Is Acceptable to Record Cash Received in Advance of Providing