Curtis Company received $250 from a customer for services to be performed at a future date.

Question

Quizplus · Accepted Answer

The Answer is (I) (I) (N) (N) (N) (N) (I) Explanation: Collecting a payment in advance from a customer increases assets (cash) and increases liabilities (unearned revenue). It does not affect the income statement. Revenue will not be recognized until the services are provided. It will be reported as a cash inflow from operating activities on the statement of cash flows.

(I) (I) (N) (N) (N) (N) (I)
Explanation: Collecting a payment in advance from a customer increases assets (cash) and increases liabilities (unearned revenue). It does not affect the income statement. Revenue will not be recognized until the services are provided. It will be reported as a cash inflow from operating activities on the statement of cash flows.

Curtis Company Received $250 from a Customer for Services to Be