AccountingA company received money from a customer in March, for services to be provided in April, May and June. At the end of March, what is the effect on the financial statements?(Note: SOCI = Statement of Comprehensive Income, SFP = Statement of Financial Position). SFP: Increase in Assets and LiabilitiesSOCI: No effect SFP: Increase in LiabilitiesSOCI: Increase in Revenue SFP: Increase in AssetsSOCI: Increase in Revenue SFP: NoneSOCI: Increase in Bad Debt Expense and increase in Revenue

Money received as advance from a customer are treated as a liability because the related revenue has…

Answered: A company received money from a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter5: Completing The Accounting Cycle

Section: Chapter Questions

Problem 3EB: For each of the following accounts, identify whether it would be closed at year-end (yes or no) and...

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Accounting

A company received money from a customer in March, for services to be provided in April, May and June. At the end of March, what is the effect on the financial statements?

(Note: SOCI = Statement of Comprehensive Income, SFP = Statement of Financial Position).

		SFP: Increase in Assets and Liabilities SOCI: No effect
		SFP: Increase in Liabilities SOCI: Increase in Revenue
		SFP: Increase in Assets SOCI: Increase in Revenue
		SFP: None SOCI: Increase in Bad Debt Expense and increase in Revenue

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