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

Collecting cash for services to be rendered in the future is an asset source transaction. The asset account (cash) increases and the liability account (unearned revenue) increases. Since the revenue recognition is deferred (delayed), there is no effect on the income statement. A cash inflow from operating activities is shown on the statement of cash flows.

Which of the Following Shows How the Event "Collected Cash