Which of the following accounts represents a deferred revenue? I. Interest Revenue
II. Income Tax Payable
III. Unearned Subscription Revenue
A)I only
B)II only
C)III only
D)Both II and III

Question

Quizplus · Accepted Answer

Deferred revenue represents money that has been received by a company for a service or product that has not yet been delivered or earned. Therefore, only option III, Unearned Subscription Revenue, represents a deferred revenue account. Option I (Interest Revenue) is a revenue account and option II (Income Tax Payable) is a liability account.

Which of the Following Accounts Represents a Deferred Revenue? I