Time Warner is a publishing and communications company,specializing in magazines,cable television operations,television program development,and other telecommunication services.Its financial statements show $37,666 in an account called Deferred Revenue,which represents amounts that customers have paid in advance of receiving magazines,cable television,and internet services.What type of account is this and on what statement is it reported?
A)Asset;Balance Sheet
B)Liability;Balance Sheet
C)Revenue;Balance Sheet
D)Revenue;Income Statement

Question

Quizplus · Accepted Answer

Deferred Revenue is a liability representing a company's obligation to provide goods or services to customers in the future.Liabilities are reported on the balance sheet.

Time Warner Is a Publishing and Communications Company,specializing in Magazines,cable