Question
Amazon requires its Amazon members to pay their membership fees at the beginning of the benefit period. The members then enjoy the membership benefits for
Amazon requires its Amazon members to pay their membership fees at the beginning of the benefit period.
The members then enjoy the membership benefits for a year.
How should Amazon account for these membership dues received from customs in advance?
A. When received, as liabilities and reported on the balance sheet under current liabilities.
B. When received, as revenue and reported on the income statement.
C. When received, as unearned revenue and reported on the income statement.
D. When received, as an asset which appears on the income statement under current liabilities.
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