Cash received from a customer in advance of work being performed or goods provided is recorded as revenue.

Name: Cash received from a customer in advance of work being performed or goods provided is recorded as revenue.
Brand: Quizplus
Rating: 5.0 (31 reviews)

Question

Quizplus · Accepted Answer

Cash received in advance of providing goods or services is recorded as a liability (deferred revenue or unearned revenue) on the balance sheet, not as revenue, until the goods or services are delivered.

Cash Received from a Customer in Advance of Work Being