Advances from customers are classified as a(n)

Name: Advances from customers are classified as a(n)
Brand: Quizplus
Rating: 4.9 (55 reviews)

Question

Quizplus · Accepted Answer

Advances from customers are amounts received in advance of providing goods or services to customers. These are liabilities because they represent a future obligation to either deliver goods or services or to refund the advance payment if the goods or services are not provided. Specifically, they are a current liability because the obligation is expected to be fulfilled within one year.

Advances from Customers Are Classified as A(n)