For each transaction select the letter of the type of adjustment that would be required
-Revenue is earned during the current period, although customers had paid in a previous period
A)Deferred expense
B)Deferred revenue
C)Accrued liability
D)Accrued asset

Question

Quizplus · Accepted Answer

The revenue has been earned in the current period but the customer had paid in a previous period. This situation indicates that the cash received is a liability that should be deferred until the service is provided. Therefore, an adjustment of deferred revenue is required.

For Each Transaction Select the Letter of the Type of Adjustment