Question: A customers prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the

A customers prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the balance sheet to the income sheet. This is an example of the revenue recognition principle.

true or false

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A customer's prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the...

The Goodyear Tire & Rubber Company's December 31, 2013 financial statements reported the following (in millions). What did Goodyear report for cash on its December 31, 2012 balance sheet? $ 2, 281...

A customer s prepayment for services not yet rendered is initially recorded as unearned revenue (a liability). Then, at the end of the accounting period, the unearned revenue is moved from the...

A customers prepayment for services not yet rendered (for example, a deposit) is initially recorded by the company as unearned revenue, which is classified as a liability on the balance sheet. Group...

chipotles net income percentage for 2022 was________ while it was______ for 2021. Fill in the blank. CHIPOTLE MEXICAN GRILL, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) The majonty of...

please help and give correct answers thankyou Practice Session No.01 ACC101-SPRING 2022 Question No. 2 Khawaja Masood Raza Synergies Business Services UNADJUSTED TRIAL BALANCE As on 31 December 2019...

1. Describe the character of each of these book/tax differences as 1) a permanent or temporary difference or neither, and 2) if a temporary difference, a taxable temporary difference (DTL) or a...

Please explain the answers. Please show the solutions. 1. Describe the character of each of these book/tax differences as 1) a permanent or temporary difference or neither, and 2) if a temporary...

Please if you are an expert in accounting :) This is all the information I was provided The Unadjusted Trial Balance has been provided along with outstanding balance day adjustments for a business....

1. The backward pass in project network calculations determines the Latest time's activities can begin Earliest time's activities can be finished Critical path Both A and C are correct A, B, and C...

In the beginning of the year you sold 3 June E-Mini S&P 500 futures contracts at a futures price of 4547.75. The spot price at contract maturity was 4662.25. The contract multiplier is $50. a)...

. 1 5 2 0 1 5 0 . 5 The conflict of ranking based on IRR and NPV is due to: Cash flow currency Project shareholders Project management Cash flow size . 1 5 2 0

This is in Python A prime number is a number that is only evenly divisble by itself and 1. or exampler the number S is prime because it can only be evenlly divided by and 5. The number 6, however, is...