Deferred revenues should be classiﬁed as Other Revenues on the statement of earnings.

Name: Deferred revenues should be classiﬁed as Other Revenues on the statement of earnings.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Deferred revenues should not be classified as revenues on the statement of earnings until the goods or services have been delivered to the customer. They should be classified as a liability on the balance sheet and recognized as revenue when earned, not as "Other Revenues" on the statement of earnings.

Deferred Revenues Should Be Classiﬁed as Other Revenues on the Statement