At times, businesses require advance payments from customers that will be applied to the purchase price when goods are delivered or services provided. These customer advances represent:

At times, businesses require advance payments from customers that will be applied to the purchase price when goods are delivered or services provided. These customer advances represent: 



A. Liabilities until the product or service is provided.
B. A component of shareholders' equity.
C. Long-term assets until the product or service is provided.
D. Revenue upon receipt of the advance payment.




Answer: A


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