Which One of the Following Is an Example of a Deferred

question 116

Multiple Choice

Which one of the following is an example of a deferred revenue?

• A)Sales are made to customers on credit.
• B)Revenue has been earned but not yet recorded.
• C)Payments are received prior to providing the services to customers.
• D)Cash sales are made to customers.

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Definitions:

Trade Sales Promotion

A promotion that encourages resellers to purchase and aggressively sell a manufacturer’s products by offering incentives like sales contests, displays, special purchase prices, and free merchandise.

Free Merchandise

Products or goods given away at no cost to promote a brand, product, or service.

Premiums

Extra payments required for insurance coverage or additional costs added to the usual price of services or goods, often in exchange for higher quality or added benefits.

Fast Moving Products

Products that are sold quickly and in large volumes, often requiring frequent restocking.