All else equal, a large increase in deferred revenue in the current period would be expected to produce what effect

on revenue in a future period?

Multiple Choice

Large decrease, because. deferred revenue implies that less revenue has been earned, which

reduces future revenue

Large decrease, because deferred revenue indicates collection problems that will reduce net

revenues in future periods

Large increase, because deferred revenue becomes revenue when the seller has satisfied its

performance obligations

No effect, because deferred revenue is a liability, so payment will use assets rather than providing

revenue