Asked by
Jasmine Adriano
on Nov 15, 2024
Verified
Deferred revenues are
A) received and recorded as liabilities before they are earned.
B) earned and recorded as liabilities before they are received.
C) earned but not yet received or recorded.
D) earned and already received and recorded.
Deferred Revenues
Income received by a company for goods to be delivered or services to be provided in the future, recorded as a liability until earned.
Liability
A financial obligation or debt owed by a business or individual to another entity, to be paid in the future.
- Distinguish and clarify the distinct categories of adjusting entries such as prepaid expenses, deferred revenues, depreciation, and supplies adjustments.
- Carry out adjusting entries for deferred incomes and recognize their influence on the profit and loss statement and statement of financial position.
Verified Answer
DM
Learning Objectives
- Distinguish and clarify the distinct categories of adjusting entries such as prepaid expenses, deferred revenues, depreciation, and supplies adjustments.
- Carry out adjusting entries for deferred incomes and recognize their influence on the profit and loss statement and statement of financial position.