Advance cash payments for future services to be received create noncash assets in the balance sheet.

Name: Advance cash payments for future services to be received create noncash assets in the balance sheet.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Advance cash payments for future services create a liability in the balance sheet, which is later recognized as revenue when the services are provided. This liability represents an obligation to provide the services in the future and is therefore a kind of noncash asset.

Advance Cash Payments for Future Services to Be Received Create