Deferred Revenue Is Recorded as an Asset Until the Revenue

question 56

True/False

Deferred revenue is recorded as an asset until the revenue has been earned.

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Definitions:

Free Meal

A meal provided without charge, often as a form of aid, hospitality, or marketing strategy.

Key Driver

A critical factor or element that significantly influences the outcome or success of a process, strategy, or business.

Revenue

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Freemium Revenue Model

A business strategy where basic services are provided free of charge while more advanced features must be paid for.