Which of the Following Is Not True About Contract Liabilities

question 49

Multiple Choice

Which of the following is not true about contract liabilities?

• A) Contract liabilities are only recognized when the seller has a conditional right to receive payment.
• B) Contract liabilities might be called deferred revenue.
• C) Contract liabilities are recognized when the seller has been paid in advance of satisfying its performance obligations.
• D) Contract liabilities may be shown on a separate line of the balance sheet.

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Definitions:

Confirmation Process

A procedure used to verify or validate an item, information, or theory, often involving evidence or experimentation.

Experience

The knowledge or practical wisdom gained from direct participation in events or activities, shaping one's perception and understanding.

Gravity

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Universal Causality

The principle that every event has a cause, suggesting a fundamental order to the universe and the predictability of phenomena.