All Else Equal, a Large Increase in Deferred Revenue in the Current

question 62

Multiple Choice

All else equal, a large increase in deferred revenue in the current period would be expected to produce what effect on revenue in a future period?

• A) Large increase, because deferred revenue becomes revenue when the seller has satisfied its performance obligations.
• B) Large decrease, because deferred revenue implies that less revenue has been earned, which reduces future revenue.
• C) No effect, because deferred revenue is a liability, so payment will use assets rather than providing revenue.
• D) Large decrease, because deferred revenue indicates collection problems that will reduce net revenues in future periods.

Know the boundaries of competence and when to refer clients for additional services.

Grasp the ethical use of client testimonials and advertising in career counseling.

Understand the value framework guiding career counselors' work with clients.

Understand the core principles and focus of different career theories.