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What is A liability created when cash is received in advance of performing a service for a customer?
Wiki User
∙ 12y ago
The only real liability is if the service is not rendered. If that happens money has been received with nothing in return. The one getting the service can have charges reversed if they choose and in most cases have up to 6 mos to do it. They can also have an option of placing a mechanics lean against yo and the company.
Wiki User
∙ 12y ago
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Is a customer deposit a current liability?
Yes, customer deposits is that amount which is received in advance for the services in future.
What is the liability created by receiving the revenue in advance?
Depends on the nature of the revenue received. Usually unearned revenue, customer advances, contract revenue in advance.
Are Advance paid a current asset or current liability?
advance paid is current asset and advance received is current liability.
Is interest received in advance considered asset or liability?
Interest received in advance is liability of business till the time it is actually earned by business.
What is income received in advance?
Income received in advance means that amount form customer is received in advance with promise of goods delivery at some future time.
Is a customer deposit a current liability?
Yes, customer deposits is that amount which is received in advance for the services in future.
What is the liability created by receiving the revenue in advance?
Depends on the nature of the revenue received. Usually unearned revenue, customer advances, contract revenue in advance.
Are Advance paid a current asset or current liability?
advance paid is current asset and advance received is current liability.
Is interest received in advance considered asset or liability?
Interest received in advance is liability of business till the time it is actually earned by business.
What is income received in advance?
Income received in advance means that amount form customer is received in advance with promise of goods delivery at some future time.
What is unearned rent?
It is the rent which u have received in advance. . . . It is a liability for you. . . .got it. . . . . . !
When cash is received in advance of performing a service the accountant?
Unearned Revenue
Is unearned revenue a current liability when advance payment received for construction work?
no
Should customer deposits be shown on the balance sheets as a current liability or as unearned income?
Customer deposits should be shown on the balance sheets as a current liability. This is because the deposits represent an obligation or liability to the company to fulfill the customer's orders or requests. It does not meet the criteria to be recorded as unearned income, which typically refers to amounts received in advance of the company providing goods or services.
Cash received in advance what is journal entry?
income received in advanceincome a/c drTo income received in advance A/Cso i think herecash ac drto cash received in advance i am not sure better check with some expertsincome received in adv is a liability and shown on liabilityu side in balance sheet.
What is the Journal entry for collected 770 in advance from a customer?
A cash advance received from customer journal entry is required when a business receives a cash payment from a customer in advance of delivering goods or services.
Journal entry for income received in advance?
Debit customer depositsCredit unearned revenue
