What is the effect on the statement of financial position when a deposit that was previously...
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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 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
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Answer rating: 100% (QA)
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 ... View the full answer
Related Book For
Principles of Money Banking and Financial Markets
ISBN: 978-0321339195
12th edition
Authors: Lawrence S. Ritter, William L. Silber, Gregory F. Udell
Posted Date:
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