If a company credits a revenue account when cash is received in advance of providing a service,

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If a company credits a revenue account when cash is received in advance of providing a service, then the adjusting entry is the same as if the company had debited a liability account when it received the cash. Is this correct? Why or why not?

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Accounting Principles Part 1

ISBN: 978-1118306789

6th Canadian edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow

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Question Posted: Mar 15, 2017 11:02 AM

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If a company credits a revenue account when cash is received in advance of providing a service,

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This is incorrect When a revenue account is credited w...View the full answer

Accounting Principles Part 1

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