Cash collected from customers before goods are delivered will:
A) increase revenues and decrease liabilities
B) increase assets and increase revenues
C) increase liabilities and decrease revenues
D) increase liabilities and increase assets

Question

Quizplus · Accepted Answer

Cash collected from customers before goods are delivered increases assets (cash) and increases liabilities (unearned revenue) because the company has an obligation to deliver goods or services in the future.

Cash Collected from Customers Before Goods Are Delivered Will