Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 14 - No. 36)
If a company receives cash in advance for services to be performed, what will happen?
A liability will be recognized.
Revenue will be recognized.
An asset will be recognized.
Expenses will be recognized.
Explanation
Cash is received, so an asset increases. The company also has the liability to provide services.
Comments (0)
