Cash collected from customers before goods are delivered will increase ________.

Name: Cash collected from customers before goods are delivered will increase ________.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When cash is collected from customers before goods are delivered, it is recorded as a liability (unearned revenue) because the company owes either the goods or services or a refund to the customer until the goods or services are delivered. At the same time, the cash account, an asset, increases because the company has received cash.

Cash Collected from Customers Before Goods Are Delivered Will Increase