A deferred credit meets the definition of a liability because
A) It is a probable future sacrifice of assets as the result of a past transaction or event.
B) It is a present obligation to transfer assets to another entity.
C) It is an accrual representing an obligation to pay money in the future.
D) It is a present obligation to provide services to another entity.

Question

Quizplus · Accepted Answer

A deferred credit is a present obligation to provide services to another entity, which aligns with the definition of a liability.

A Deferred Credit Meets the Definition of a Liability Because