________ will be increased when a company receives cash before performing the services.

Question

Quizplus · Accepted Answer

Unearned Service Revenue represents the liability created when a company receives money in advance of providing services. The revenue is not considered earned until the services are provided, so the cash received is recorded as a liability until the customer receives the services. Once the services are provided, the liability decreases and is replaced with Service Revenue.

________ Will Be Increased When a Company Receives Cash Before