Which of the following is least likely to have a liability called Deferred Revenue?
A) An insurance company
B) A retailer
C) A magazine subscription company
D) A university or college

Question

Quizplus · Accepted Answer

Deferred revenue, also known as unearned revenue, occurs when a company receives payment for goods or services that are to be delivered or performed in the future. Retailers typically recognize revenue at the point of sale, making it less likely for them to have deferred revenue compared to companies that receive payments for services or goods delivered over time, such as insurance companies, magazine subscriptions, or educational institutions that collect tuition for future classes.

Which of the Following Is Least Likely to Have a Liability