Amounts received in advance from customers for future products or services:

A) Are revenues.
B) Increase income.
C) Are liabilities.
D) Are not allowed under GAAP.
E) Require an outlay of cash in the future.

Question

Carsyn Boyum · Accepted Answer

Final Answer : C, Explanation :  Amounts received in advance from customers for future products or services are a liability because the company owes the customer the product or service. The liability is fulfilled when the product or service is provided to the customer.

Amounts received in advance from customers for future products or services:

A) Are revenues.
B) Increase income.
C) Are liabilities.
D) Are not allowed under GAAP.
E) Require an outlay of cash in the future.

Definitions

Learning Objectives

Learning Objectives

Related questions

Amounts received in advance from customers for future products or services:A) Are revenues.B) Increase income.C) Are liabilities.D) Are not allowed under GAAP.E) Require an outlay of cash in the future.

Definitions

Learning Objectives

Learning Objectives

Related questions

Amounts received in advance from customers for future products or services:

A) Are revenues.
B) Increase income.
C) Are liabilities.
D) Are not allowed under GAAP.
E) Require an outlay of cash in the future.