A deferral exists when a company receives cash
A)after recognizing the associated revenue.
B)at the same time the associated revenue is recognized.
C)before recognizing the associated revenue.
D)either before or after recognizing the associated revenue.

Question

Quizplus · Accepted Answer

A deferral occurs when cash is received before the revenue is recognized. This typically occurs when a company receives advance payments for goods or services that will be provided at a later date.

A Deferral Exists When a Company Receives Cash