Assignment - Deferred Revenues Dialogue

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Assignment - Deferred Revenues Dialogue

New Accounting Students often have difficulty understanding the concept of Deferred Revenues. Deferred Revenues occur when someone pays you to provide a service or good ahead of time. Since you haven't earned the money yet, you record it as Unearned Revenue, a liability. Once the revenue is 'earned' you write-off the liability and recognize revenue. Are there any moral issues involved in accepting money before it is earned? What happens if you fail to provide the service or good to the customer as agreed upon?

What are your thoughts on this from a Christian perspective? Please cite at least one verse of Scripture.

Reference no: EM132494286

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