If you are talking about a business contract like you agreeing to supply someone, and they pay you before you have supplied them then it would be a liability under Unearned Revenues. However if you supply them first then it would go under Accounts recievable.
In memory of customer service - With sympathy from Grant Thornton
November 28th, 2009 at 12:25 am
If you are talking about a business contract like you agreeing to supply someone, and they pay you before you have supplied them then it would be a liability under Unearned Revenues. However if you supply them first then it would go under Accounts recievable.
References :
Financial Accounting Classes