Which one of the following is an example of a deferred revenue?
A)Sales are made to customers on credit.
B)Revenue has been earned but not yet recorded.
C)Payments are received prior to providing the services to customers.
D)Cash sales are made to customers.

Question

Quizplus · Accepted Answer

Deferred revenue refers to payments received from customers before the services are provided. Option C describes this scenario, as payments are received prior to providing the services to customers. Option A describes accounts receivable, option B describes accrued revenue, and option D describes a regular sale.

Which One of the Following Is an Example of a Deferred