Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 35 - No. 21)
If a company receives cash from a customer for services to be performed next year, what account is credited?
Service Revenue.
Accounts Receivable.
Unearned Revenue.
Cash.
Explanation
The correct credit is to unearned revenue, a liability account, because the revenue has not yet been earned.
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