7 Deferred revenues refer to A Cash received from customers

7. Deferred revenues refer to: A. Cash received from customers in advance of the good or service to be provided. B. Revenue being recorded prior to cash collection from the customer C. Revenue being recorded at the same time the cash is collected from the customer D. Cash being collected from the customer after the revenue is earned.

Solution

Deferred revenue is not earned revenue. Deferred revenue is not revenue according to accural method of accounting.

Deferred revenue is revenue which is receive from customer as advance payment for which service is provided in future. so deferred revenue is unearned revenue.

so answer is a) Cash received from customers in advance of the goods or service to be provided