Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 50)

If a company has received cash in advance from a customer for services to be provided, which account will be credited when initially receiving the cash?

Service Revenue

Accounts Receivable

Cash

Unearned Revenue

Explanation

Unearned revenue represents a liability because the company owes the customer services.

Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 27 - No. 50)

Explanation

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