When a company provides services for which cash will not be received until some future date, the company should record the amount received as unearned revenue for the amount charged to the customer. True / False.

False

Explanation:

The revenue principle and the matching principles are two principles that help in the determination of the period in which expenses and revenues are recognized. In line with the principle, as long as any revenue is realizable, then such expenses or revenues are recognized. As long as services are rendered or goods transferred, regardless of the time in which the cash is received, revenue is recognized. However, accrued revenue is that which is recognized before receiving cash, while deferred revenue is the revenue recorded or realized after receiving cash.

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