Asked by Nicole Steele on Jun 16, 2024
Verified
Deferred revenue is revenue that is
A) earned and the cash has been received
B) earned but the cash has not been received
C) not earned and the cash has not been received
D) not earned but the cash has been received
Deferred Revenue
Income a company has received for its products or services but has not yet earned, often considered a liability until the service is provided or product delivered.
- Recognize the categories and objectives of adjustment entries in accounting, including accrued revenues, accrued expenses, deferred revenues, and prepaid expenses.
- Recognize and elucidate the prevalent categories of accounts that adjusting entries impact, such as assets, liabilities, revenues, and expenses.
Verified Answer
MJ
Mystic JewelJun 18, 2024
Final Answer :
D
Explanation :
Deferred revenue refers to money received by a company for goods or services that have not yet been delivered or performed. It is considered a liability on the balance sheet until the company fulfills its obligation to provide the goods or services.
Learning Objectives
- Recognize the categories and objectives of adjustment entries in accounting, including accrued revenues, accrued expenses, deferred revenues, and prepaid expenses.
- Recognize and elucidate the prevalent categories of accounts that adjusting entries impact, such as assets, liabilities, revenues, and expenses.
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