Which of the following is not true about contract liabilities?
A) Contract liabilities are only recognized when the seller has a conditional right to receive payment.
B) Contract liabilities might be called deferred revenue.
C) Contract liabilities are recognized when the seller has been paid in advance of satisfying its performance obligations.
D) Contract liabilities may be shown on a separate line of the balance sheet.

Question

Quizplus · Accepted Answer

Contract liabilities are not conditional obligations. They are an obligation that arises due to a customer prepayment.

Which of the Following Is Not True About Contract Liabilities