A Deposit Received by an Entity in Advance of Goods

question 49

Multiple Choice

A deposit received by an entity in advance of goods or services being supplied is initially classified as:

• A) an asset.
• B) a liability.
• C) income.
• D) an expense.

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Definitions:

Poverty

A state or condition where an individual or community lacks the financial resources and essentials for a minimum standard of living.

Mood Disorders

Psychological disorders characterized by emotional extremes. See major depressive disorder, mania, and bipolar disorder.

Emotional Extremes

Intense forms of feelings that are significantly beyond the normal range of emotions.

Paranoia

A mental condition characterized by delusions of persecution, unwarranted jealousy, or exaggerated self-importance, typically developing without external provocation.