Which statement about deferred revenue is correct?
A)Deferred revenue is a financial liability.
B)Deferred revenue is a non-financial liability.
C)Deferred revenue is a held for trading financial liability.
D)Deferred revenue arises when the contract is signed.

Question

Quizplus · Accepted Answer

Deferred revenue is considered a non-financial liability because it represents an obligation to deliver goods or services in the future, rather than a requirement to pay cash or another financial instrument.

Which Statement About Deferred Revenue Is Correct