When the Balance of the Deferred Revenue Account Decreases During

question 40

Multiple Choice

When the balance of the Deferred Revenue account decreases during an accounting period:

• A)Accrual-basis revenues exceed cash collections from customers.
• B)Accrual-basis expenses exceed cash collections from customers.
• C)Accrual-basis revenues are less than cash collections from customers.

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Definitions:

RAM

Random Access Memory, a type of computer memory that can be accessed randomly, any byte of memory can be accessed without touching the preceding bytes.

Temporary

Pertaining to a limited period of time, not permanent.

Volatile

Referring to substances that easily evaporate at normal temperatures or, in financial markets, to investments subject to rapid and unpredictable changes in value.

Supercomputers

High-performance computing systems that are among the fastest and most powerful at any given time, used for complex simulations, data analysis, and scientific research.