Which One of the Following Is an Example of a Deferred

question 116

Multiple Choice

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

• A)Sales are made to customers on credit.
• B)Revenue has been earned but not yet recorded.
• C)Payments are received prior to providing the services to customers.
• D)Cash sales are made to customers.

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Definitions:

Standard Error

A statistic that measures the dispersion of sample means around the population mean.

Sample Mean

The arithmetic average of a sample set of data, used to estimate the population mean.

Normally Distributed

Describes a data set that follows a bell-shaped curve where most observations cluster around the mean and probabilities for values taper off symmetrically towards both extremes.

Standard Deviation

Standard deviation is a measure of the amount of variation or dispersion of a set of values, indicating how much the values in the set differ from the mean.