When a Company Pays for Services Received Using a Check,it

question 143

True/False

When a company pays for services received using a check,it should credit Accounts Payable until the check is paid by the bank.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Fees Earned

Income generated from services provided, recognized in the period in which the services are rendered.

Billed

Issuing an invoice to customers for goods sold or services provided, indicating the amount they owe the business.

Unearned Subscription Revenue

Income received for subscriptions that have yet to be fulfilled or delivered to the customer, considered a liability until earned.