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 balance sheet to the income statement. This is an example of the revenue recognition principle. 1) True 2) False A company's net cash flow will equal its net income: 1) Almost always 2) Rarely 3) Occasionally 4) Only when the company has no investing cash flow for the period 5) Only when the company has no investing or financing cash flow for the period