Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 21 - No. 23)
What happens to the income statement when a company provides services to a customer, but the customer has not yet paid?
Service revenue will be recognized.
Unearned revenue will be recognized.
Accounts receivable will decrease.
The income statement is not affected.
Explanation
Revenue is recognized when earned, even if cash hasn't been received yet.
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