A publisher who sells one-year, prepaid subscriptions to its monthly magazine does not need to defer revenue because the advance payments have already been received from customers.
Answer: False - When a company collects cash before the related revenue has been earned, the cash is called dferred revenues; in other words, this revenue should be deferred. The publisher does not earn and should not record any revneu upon receipt of the advance subscription payments from its customers. Instead, the publisher earns and records revenue each time the monthly magazines are delivered to its customers.
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