Deferred revenue account is a/an ________ account.
A)asset
B)liability
C)equity
D)sales

Question

Quizplus · Accepted Answer

Deferred revenue represents payments received from customers for goods or services that have not yet been provided. This creates an obligation for the company to deliver the goods or services, making it a liability account. As the company delivers the goods or services, the deferred revenue amount is recognized as revenue and moves from a liability to a revenue account.

Deferred Revenue Account Is A/an ________ Account