When a deferral adjustment is made to a liability account,that liability becomes a(n):

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Deferral adjustments are used to update amounts that have been previously deferred on the balance sheet.When a company receives cash from customers before delivering the goods or services,this revenue is initially deferred as a liability on the balance sheet (in an account called Deferred Revenue).Later,when the company delivers the goods or services,thereby meeting its obligation and earning the revenue,a deferral adjustment is made to decrease the liability and increase the related revenue account.

When a Deferral Adjustment Is Made to a Liability Account,that