Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 38 - No. 18)
If a company receives cash from a customer for services it will provide next year, what should be recorded initially?
Service Revenue.
Accounts Receivable.
Unearned Revenue.
Cash.
Explanation
Unearned revenue is credited because there is a liability (service is owed) that has not been earned.
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