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Cash received in January for printing to be done later was recorded by the company as a:
ALeveraging
BLiability
CLicensing
DLodgement
Answer & Solution
Correct answer: B. Liability
1. The work had not been performed when the money arrived.
2. The firm owes either the service or the money back.
3. So it was recorded as a liability.
_Source: OpenStax Principles of Financial Accounting, Chapter 4, The Adjustment Process._
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