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Question
Deferred credits will appear on the balance sheet with the________.
Deferred credits will appear on the balance sheet with the________.
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Solution
The correct option is B Liabilities
A deferred credit
could mean money received in advance of it being earned, such as deferred
revenue, unearned revenue, or customer advances. Deferred revenue refers to
payments received in advance for services which have not yet been performed or
goods which have not yet been delivered. These revenues are classified on the
company's balance sheet as a liability and not as an asset.
A deferred credit could mean money received in advance of it being earned, such as deferred revenue, unearned revenue, or customer advances. Deferred revenue refers to payments received in advance for services which have not yet been performed or goods which have not yet been delivered. These revenues are classified on the company's balance sheet as a liability and not as an asset.
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