The Customer Deposits account is reported on the balance sheet as a:
A)contra asset
B)current asset
C)current liability
D)long-term asset

Name: The Customer Deposits account is reported on the balance sheet as a: A)contra asset B)current asset C)current liability D)long-term asset
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Question

Quizplus · Accepted Answer

Customer deposits represent funds that a company has received from customers but has not yet earned. Therefore, the customer deposits account is classified as a current liability on the balance sheet.

The Customer Deposits Account Is Reported on the Balance Sheet