Financial Reporting and Analysis Q99
| Revenue recognized.Cash not received. | Cash received. Revenue not recognized. |
| Asset | Asset |
| Asset. | Liability |
| Liability. | Asset |
- Option : B
- Explanation : Recognizing revenue before receiving cash creates a ‘receivable’ which is an asset. Receiving cash before recognizing revenue creates ‘unearned revenue’ which is a liability.
You must be logged in to post a comment.
You must be logged in to post a comment.