The advance cash receipts of future revenues are called ________.
A)accrued revenues
B)deferred expenses
C)deferred revenues
D)accrued expenses

Question

Quizplus · Accepted Answer

Deferred revenues are the advance cash receipts of future revenues. This is because the revenue has not yet been earned, and the company has received the cash in advance. The other options, accrued revenues and expenses, refer to revenues or expenses that have been earned or incurred but have not yet been recorded in the accounting system. Deferred expenses refer to payments made for goods or services that have not yet been used or consumed.

The Advance Cash Receipts of Future Revenues Are Called ________