Deferred Revenues Are Liabilities Because

question 191

Multiple Choice

Deferred Revenues are liabilities because:

• A)no cash has changed hands.
• B)goods or services have been paid for,but not yet provided to the customer.
• C)the company is transferring them to another period for tax reasons.
• D)the customer may someday return items purchased for a refund.

---

Definitions:

Supply Chains

The sequence of processes involved in the production and distribution of a commodity, from the sourcing of raw materials to the delivery of the final product to the consumer.

Material

Refers to physical substances from which objects are made, often characterized by their durability, flexibility, and other physical properties.

Information

Processed data that is meaningful and useful for decision-making.

Financial Flows

The movement of money between entities, businesses, or within the financial markets.