Which Statement About Deferred Revenue Is Correct

question 43

Multiple Choice

Which statement about deferred revenue is correct?

• A)Deferred revenue is always a non-current liability.
• B)Deferred revenue could arise from loyalty programs.
• C)Deferred revenue is measured using expected values.
• D)Deferred revenue arises when the goods are shipped.

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Definitions:

Mutual Gain

A situation or outcome in which all parties involved benefit or profit from the arrangement or transaction.

Potential Exchange

The possibility of trading goods, services, or other items of value between parties.

Trade

The exchange of goods, services, or both between two or more parties.

Negotiate

The process of discussing something with someone in order to reach a mutually agreed conclusion.