Which One of the Following Is an Example of a Deferred

question 15

Multiple Choice

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

• A)Sales are made to customers on credit.
• B)Interest has been earned by a bank deposit,but it has not been recorded.
• C)Cash is received prior to providing the services to customers.
• D)Cash sales are made to customers.

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Definitions:

Trust

An arrangement in which title to property is held by one person (a trustee) for the benefit of another (a beneficiary).

Grantor

The person or entity that creates a trust and transfers property into it, or someone who grants or conveys a legal right.

Living Will

A document that allows a person to control the methods of medical treatment that may be used after a serious accident or illness.

Long-term Improvements

Enhancements or upgrades to property or assets that are expected to provide benefits over a period exceeding one year.