Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 14 - No. 50)
What is the impact on the financial statements when a business receives cash in advance for services that will be provided in the future?
Increases cash
Increases accounts receivable
Increases unearned revenue
Increases service revenue
Explanation
The business receives cash (increase in assets) and has a liability (unearned revenue) to provide the service later.
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