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A customer pays in advance for a service not yet provided. Revenue cannot be recorded yet under the:

AGoing concern idea
BRevenue earned rule
CCost principle
DConservatism idea
Answer & Solution
Correct answer: B. Revenue earned rule
1. Revenue must be earned first. 2. The service has not been given. 3. It is the revenue earned rule. _Source: OpenStax Principles of Financial Accounting, Chapter 3, Analyzing and Recording Transactions._
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