In a Deferral Adjustment for Revenues Collected in Advance That

question 247

Multiple Choice

In a deferral adjustment for revenues collected in advance that are now earned:

• A)a liability is decreasing because cash is being paid for an expense incurred at the time of the adjustment.
• B)the liability recorded when cash was received is increased by the adjustment for the revenue being earned.
• C)the liability recorded when cash was received is decreased by the adjustment for revenue being earned.
• D)a liability is increasing because cash will be paid for an expense in the future.

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Evidence

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Gold Standard

A monetary system where a country's currency or paper money has a value directly linked to gold.

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The practice of obtaining information, ideas, or content by soliciting contributions from a large group of people, especially from an online community.

Business

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