Asked by
Brenda Hernandez
on Nov 15, 2024
Verified
Refund Liability is a(n)
A) asset account.
B) contra asset account.
C) expense account.
D) deferred revenue account.
Refund Liability
An obligation to return funds received from customers in the event of product returns or dissatisfaction, represented as a liability on the balance sheet.
Deferred Revenue Account
An account on a company's balance sheet that represents payment received from customers for goods or services not yet delivered or completed.
Contra Asset Account
An asset account where its balance is a negative figure that is subtracted from the balance of its related accounts on the balance sheet.
- Identify accounts as either assets, liabilities, revenues, or expenses, depending on the context of the transactions.
Verified Answer
KD
Learning Objectives
- Identify accounts as either assets, liabilities, revenues, or expenses, depending on the context of the transactions.