Which of the Following Is Not True About Deferred Revenue

question 20

Multiple Choice

Which of the following is not true about deferred revenue?

• A) Deferred revenue with respect to gift cards is recognized as revenue when the gift cards expire.
• B) Deferred revenue is a liability.
• C) Deferred revenue is recognized on credit sales when collectibility can be estimated.
• D) Customer prepayments typically require recognition of deferred revenue.

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Definitions:

Brain Functioning

The activities and processes that occur in the brain, including cognition, emotion, memory, and motor functions.

Acid Trip

A colloquial term for the experience of the psychoactive effects of LSD (lysergic acid diethylamide), characterized by altered perception and cognition.

Persecutory Delusion

A form of psychotic disorder where the affected person believes they are being persecuted, conspired against, spied on, followed, poisoned, or harassed by other individuals or an organization.

Grandiose

Characterized by an exaggerated belief in one's importance, power, or success, often disconnected from reality.