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A cable television entity receives deposits from customers that are refunded when service is terminated.

The average customer stays with the entity8 years. How should these

?deposits be shown on the financial statements

A. Operating revenue.

B. Other revenue.

C. Paid-in capital.

D. Liability.

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Question added by Deleted user
Date Posted: 2015/02/26
Imran Adwani
by Imran Adwani , Head of Internal Audit , Abdulla Bin Zayed Investment Group

Option "d" - Liability.

To be more specific, its a non-current liability based on the facts given in the question.

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