Which Statement About Deferred Revenue Is Correct

question 54

Multiple Choice

Which statement about deferred revenue is correct?

• A)Deferred revenue is a financial liability.
• B)Deferred revenue is a non-financial liability.
• C)Deferred revenue is a held for trading financial liability.
• D)Deferred revenue arises when the contract is signed.

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Definitions:

Forecasting

The process of making predictions based on past and present data trends, commonly used in finance to estimate future market movements or economic conditions.

Stock Market Values

The overall value of shares traded within a stock market, representing the market's perception of the total worth of its listed companies.

Uncertainty

The degree to which the outcome of an event, choice, or investment is unknown.

Constant Growth DDM

The Dividend Discount Model assumes dividends grow at a constant rate indefinitely, used to estimate the value of a company's stock.