A customer has paid the firm, in advance, for merchandise the firm will deliver next month. Why
is the firm not permitted to recognize revenue when it receives the cash?
Answers
Answered by
1
Answer:
A customer has paid the firm, in advance, for merchandise the firm will deliver next month. Why
is the firm not permitted to recognize revenue when it receives the cash?
Explanation:
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Answered by
0
Answer:
Advance payments are considered a current liability.
Explanation:
The firm is not permitted to record advance payment since the company has not yet delivered the services. so, simply, it's like a debt to the seller from the buyer, hence a current liability.
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