tb mc qu. 11-53 (static) amounts received in advance from... amounts received in advance from customers for…

tb mc qu. 11-53 (static) amounts received in advance from... amounts received in advance from customers for future products or services: multiple choice are revenues. increase income. are liabilities. are not allowed under generally accepted accounting principles (gaap) require an outlay of cash in the future.

tb mc qu. 11-53 (static) amounts received in advance from... amounts received in advance from customers for future products or services: multiple choice are revenues. increase income. are liabilities. are not allowed under generally accepted accounting principles (gaap) require an outlay of cash in the future.

Answer

Brief Explanations:

Amounts received in advance from customers are unearned revenues. Since the company has an obligation to provide future products or services, it is a liability. Revenues are recognized when earned, not when cash is received in advance. It doesn't increase income immediately as the service or product delivery is pending. It is allowed under GAAP and doesn't necessarily mean an out - lay of cash in the future (the obligation is to provide goods or services).

Answer:

C. Are liabilities.