Which of the following accounts would normally be classified as a current liability?
A)Dividends declared.
B)Deferred revenue.
C)Wages expense.
D)None of the answers are acceptable.

Question

Quizplus · Accepted Answer

Deferred revenue is a liability that arises from receiving advance payments from customers for goods or services that have not yet been provided. It is classified as a current liability because it is expected to be fulfilled within one year. Dividends declared are not classified as a current liability because they represent a distribution of profits to shareholders and do not create a liability until they are paid. Wages expense is an expense account, not a liability account.

Which of the Following Accounts Would Normally Be Classified as a Current