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 stockholders' 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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