Explain the mind the relation between the recognition of deferred revenue associated with advance payments and the later recognition of revenue.
Explain the mind the relation between the recognition of deferred revenue associated with advance payments and the later recognition of revenue.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 20Q: What is a possible ramification of deferred revenue reporting?
Related questions
Question
Explain the mind the relation between the recognition of deferred revenue associated with advance payments and the later recognition of revenue.
Expert Solution
Step 1
Deferrals:
Deferrals refer to “Transactions, events, or arrangements” where in the cash flows are occurred before the related expenses are incurred or revenues are recognized.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning