Is pre receive liability or asset

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Accepted Answer

Pre-receive liability is a financial obligation that arises before the receipt of goods or services.

Pre-receive liability refers to a liability that is incurred before the actual receipt of goods or services.
It is a financial obligation that a company owes to its suppliers or vendors for goods or services that have not yet been received.
Examples of pre-receive liabilities include advance payments made for future purchases or services, such as prepayment for a subscription or a deposit for a rental property.
Pre-receive liabilities are recorded as a liability on the company's balance sheet until the goods or services are received.
Once the goods or services are received, the liability is typically converted into an expense or accounts payable.

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