Which of the following is a liability?
A) Revenue received in advance
B) Accrued revenue
C) Accumulated depreciation
D) None of the above

Question

Quizplus · Accepted Answer

Revenue received in advance is a liability because it represents cash received from customers for goods or services that have not yet been provided. The company is obligated to provide those goods or services in the future, therefore the revenue received in advance is considered a liability until the goods or services are provided. Accrued revenue and accumulated depreciation are both assets.

Which of the Following Is a Liability