When a company postpones reporting revenue until it fulfills its promise represented by a gift card,it has recorded.
A)Accounts Receivable.
B)Prepaid Revenue.
C)Deferred Revenue.
D)Accounts Payable.

Question

Quizplus · Accepted Answer

A company postpones or defers reporting revenue until it fulfills the promise represented by a gift card by recording Deferred Revenue.Once the product or service is delivered,the company records Revenue and decreases Deferred Revenue.

When a Company Postpones Reporting Revenue Until It Fulfills Its