Asked by Angelique Ventura on May 26, 2024
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The entry to record a cash receipt from a customer when the service is to be provided in a future period involves a debit to an unearned revenue account.
Unearned Revenue Account
An account representing cash received for goods or services not yet provided; considered a liability until the service or product is delivered.
Cash Receipt
The collection of money (paper money, coins, checks) received by a business for the sale of goods or services or any other financial transaction.
- Gain an understanding of the core concepts of revenue recognition and expense allocation in accordance with the matching principle.
- Familiarize oneself with the purpose and effects of distinct adjusting entries, especially those concerning unearned revenues, accrued expenses, and depreciation.
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Learning Objectives
- Gain an understanding of the core concepts of revenue recognition and expense allocation in accordance with the matching principle.
- Familiarize oneself with the purpose and effects of distinct adjusting entries, especially those concerning unearned revenues, accrued expenses, and depreciation.
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