1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lara [203]
2 years ago
8

Define deferred revenue. Why is it a liability?

Business
1 answer:
bazaltina [42]2 years ago
4 0

Deferred revenue is payment received for goods or services that a customer expects to receive in the future. The company owes the customer until the service is rendered or the goods are delivered. This temporarily turns the sale into a liability.

Deferred revenue are money received on accrual accounting for goods or services that have not yet been earned. Under the revenue recognition principle, they are recognized as liabilities until delivery, at which point they are converted to revenue.

Deferred tax liability is an item on a company's balance sheet for which unpaid taxes are recognized but not paid until a later date.

Learn more about revenue here:brainly.com/question/16232387
#SPJ4

You might be interested in
Under nafta (north american free trade association), the united states, canada, and mexico are free to produce what each country
Paul [167]
Trade barriers. There are no barriers blocking them from trade.
8 0
3 years ago
kane manages a used book store he reads a report advising him to stock more encyclopedias. however the report is mistaken custom
Dafna1 [17]

Kane manages a used book store he reads a report advising him to stock more encyclopedias. However the report is mistaken customers in Kane's town hardly ever buy encyclopedias. what problem could this mistake cause?

As mentioned below, if the consumers do not buy the encyclopedias, then they will lose money due to purchasing items that consumers do not want. It's necessary to not only look over reports, but understand the reports to make sure that a business is not overstocking in items that consumers are not actually in demand for. Consumers will purchase items they have a demand for and based on the reports, you can understand the items they are in demand for versus the items they will not be purchasing.

5 0
3 years ago
Read 2 more answers
What is the role of consumers and producers in a free market system
Whitepunk [10]

Answer:

Consumers buy and use the products that producers make and sell to the public. So the roles are consumers=buy while producers=make.

3 0
3 years ago
How is the exchange rate determined in a fixed exchange rate system. (Economics)​
Mariana [72]

In a fixed-exchange rate system, one country's exchange rate is determined by <u>comparing</u> it to another country's rate (or to the value of gold). The purpose of this is to explain one currency in terms of another that is more stable in order to make investments and values more rational and predictable.

6 0
4 years ago
All of the following are intangible assets except
guajiro [1.7K]
The answer to this question is:

<span>All of the following are intangible assets except??
</span><span>D-"Accounts Receivable."

Hoped This helped, </span><span> Awifeamother
Your Welcome :) </span>
4 0
3 years ago
Read 2 more answers
Other questions:
  • Suppose the government passes a law that reduces unemployment benefits in a way that causes unemployed workers to seek out new j
    14·1 answer
  • Mila is at a flea market. She has $50 in her wallet. She decides that she will spend $15 on jewelry, $20 on a pair of jeans, $5
    15·2 answers
  • Noah drinks Dr. Pepper. He can buy as many cans of Dr. Pepper as he wishes at a price of $0.50 per can. On a particular day, he
    9·1 answer
  • Fogerty Company makes two products, titanium Hubs and Sprockets. Data regarding the two products follow:
    15·1 answer
  • The Kaufusi Company has the following budgeted sales: April May June July Credit sales..................................... $ 32
    13·1 answer
  • Crosby Company owns a chain of hardware stores throughout the state. The company uses a periodic inventory system and the retail
    6·1 answer
  • Which of the following statements is TRUE?A. All secondary markets are dealer markets.B. All secondary markets are broker market
    9·1 answer
  • A company has the following transactions during the month of February. February 2 Pay $610 for radio advertising for February. F
    13·2 answers
  • Which of these are commonly found on a partnership agreement?
    8·1 answer
  • Recording the Early Retirement of a Bond Issued at a Premium (with Premium Account) LO10-7 Several years ago, Cyclop Company iss
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!