Daring Dolls, Inc

Multiple Choice

Daring Dolls, Inc. received an order to provide SuperDolls for a big department store. The store paid Daring Dolls in advance for the order of SuperDolls. Which of the following describes what will occur when Daring Dolls recognizes revenue?

A) Cash will be increased.
B) Accounts receivable will be increased.
C) Deferred revenue will be decreased.
D) Deferred revenue will be increaseD.When promised goods are delivered, and cash has already been received, a liability account, Deferred Revenue, is decreased, and the account Sales Revenue is increased.