Which of the following shows how the event "collected cash for services to be rendered in the future" affects a company's financial statements?

Question

Quizplus · Accepted Answer

The event "collected cash for services to be rendered in the future" is an example of deferred revenue, which is a liability account. This means that the company has received cash but has not yet earned the revenue. Option B shows an increase in cash (the asset account) and deferred revenue (the liability account) and no impact on the income statement since the revenue has not been earned yet.

Which of the Following Shows How the Event "Collected Cash