Customers' accounts with credit balances should be disclosed as a(n)

Question

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Customers' accounts with credit balances represent liabilities owed to customers, and therefore should be classified as a current liability on the balance sheet. A credit balance in a customer's account means that the company owes money to the customer, and this obligation should be disclosed in the financial statements. Options A, C, and D do not accurately reflect the nature of this balance and therefore are not appropriate.

Customers' Accounts with Credit Balances Should Be Disclosed as A(n)