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:

Chameleon Effect

The unconscious mimicry of the postures, mannerisms, facial expressions, and other behaviors of one's interaction partners.

Social Loafing

The situation where people working in a team contribute less effort towards a goal compared to when they work by themselves.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, typically improving on simple tasks.

Deindividuation

A psychological state characterized by lowered self-awareness and diminished responsibility, often occurring in group settings that lead to disinhibited behavior.