Post Ch 03 the accounts up to the of the ting period are ca A business will sometimes receive cash prior to providing a service. Receiving cash for a service to be provided in the future is called the risk of non-collection if receipt were delayed until after the service was provided. In addition, receiving payment prior to providing a service may be more efficient in some situations. Exampies of services in which cash . Receiving cash prior to rendering the service is done to reduce In the case of rent, a business will typically collect rent in advance of providing use of a property over a period of time. As the rental periad passes, the property is being provided to the renter. At the end of the rental >period, the business transaction repeats for another period of time