1 answer

Deferred revenues: a. At the end of one accounting period often result in cash receipts from...

Question:

Deferred revenues: a. At the end of one accounting period often result in cash receipts from customers in the next period. b.

Deferred revenues: a. At the end of one accounting period often result in cash receipts from customers in the next period. b. At the end of one accounting period often result in cash payments in the next period. c. Are also called accrued revenues d. Are recorded at the end of an accounting period for revenues earned because cash has already been received

Answers

Correct answer-----Are recorded at the end of accounting period for revenue earned because cash has already been received.

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Deferred revenue are the cash received from customers in advance for which goods are not transferred or services are but yet rendered. This revenue is recorded at the month end or year end or at any time when adjusting entries are made .

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