For each transaction select the letter of the type of adjustment that would be required.
-Magazine subscriptions are delivered 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

This situation describes deferred revenue, which is when a company receives payment for goods or services before they are delivered or provided. In this case, the magazine subscriptions were paid for in a previous period but are being delivered in the current period. The revenue was deferred, or pushed forward, to the current period.

For Each Transaction Select the Letter of the Type of Adjustment