Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the effect on the statement of financial position when a deposit that was previously accepted by the business is earned because the
What is the effect on the statement of financial position when a deposit that was previously accepted by the business is earned because the contract was fulfilled, and the amount of the deposit is returned to the customer? O Cash decreases and the deposits liability account increases O The deposits asset account decreases and the deposits liability account increases O The deposits asset account decreases and the deposits liability account decreases O The deposits asset account decreases and the cash account increases
Step by Step Solution
★★★★★
3.20 Rating (150 Votes )
There are 3 Steps involved in it
Step: 1
AnswerThe correct option is c Explation Deferred revenue also known as unearned revenue refers to advance payments a company receives for products or services that are to be delivered or performed in the future The company that receives the prepayment records the amount as deferred revenue a ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started