Cash received in advance of providing the service is called ________.
A) accrued revenues
B) deferred expenses
C) deferred revenues
D) accrued expenses

Question

Quizplus · Accepted Answer

Cash received in advance of providing the service is called deferred revenues. This is because it refers to money that has been received but not yet earned. It is a liability on the balance sheet until the service is provided or the goods are delivered, which is when the revenue is recognized.

Cash Received in Advance of Providing the Service Is Called