When the seller has received cash, but has not earned all of the revenues represented by the cash by providing goods and services, the seller has incurred an obligation to provide goods or services. These liabilities
A)are referred to as deferred performance obligations.
B)may use an account title of Advances from Customers.
C)may use an account title of Deferred Revenues.
D)may use an account title of Unearned Revenues.
E)can be all of the above.

Question

Quizplus · Accepted Answer

These liabilities can be referred to by various names including deferred performance obligations, advances from customers, deferred revenues, and unearned revenues, all of which accurately describe the obligation to provide goods or services in the future.

When the Seller Has Received Cash, but Has Not Earned