Which Statement About Deferred Revenue Is Correct

question 54

Multiple Choice

Which statement about deferred revenue is correct?

• A)Deferred revenue is a financial liability.
• B)Deferred revenue is a non-financial liability.
• C)Deferred revenue is a held for trading financial liability.
• D)Deferred revenue arises when the contract is signed.

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production.

Marginal Product

The additional output gained by employing one more unit of input, holding the levels of other inputs constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource or factor of production.

Competitive Market

A market structure characterized by a large number of sellers and buyers, none of whom can influence the market price on their own.