Cash received prior to the providing of the goods or services results in an increase in both assets and liabilities.

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Shila Silwal · Accepted Answer

Final Answer : True, Explanation :  When cash is received prior to the providing of goods or services, it results in an increase in the asset cash and the liability unearned revenue. The liability represents the obligation to provide the goods or services at a future date, and it will decrease as the revenue is recognized upon the provision of the goods or services.

Cash received prior to the providing of the goods or services results in an increase in both assets and liabilities.

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